Retail investors bid for shares of Glenmark Life Sciences Ltd. on the first day of subscription of its Rs 1,514-crore initial public offering.
The portion reserved for retail investors was fully subscribed within an hour of the opening of the IPO.
Glenmark Life Sciences, a unit of Glenmark Pharmaceuticals Ltd., is selling shares at Rs 695-720 apiece. This gives it a market value of Rs 8,822 crore at the upper end of the price band. The offer comprises a fresh issue of Rs 1,060 crore and offer-for-sale worth Rs 453.6 crore by the parent.
The company plans to use Rs 800 crore from the IPO proceeds to pay the parent for the acquisition of the active pharmaceutical ingredient business in 2018. It will use Rs 155 crore for brownfield capital investment at its Dahej facility to enhance the total installed capacity by 200 kiloliter. The rest will be used for additional facilities and general corporate purposes.
Prior to the IPO, the company raised Rs 454 crore by allotting 63 lakh shares to 19 anchor investors.
Subscription Details: Day 1
The IPO was subscribed 0.76 times as of 11:00 a.m. on July 27.
Institutional subscription: 0.00 times
Non-institutional subscription: 0.07 times
Retail subscription: 1.49 times
Watch BloombergQuint’s IPO Adda With Glenmark Life Sciences’ MD & CEO Yasir Rawjee: