The Rs 1,514-crore initial public offering of Glenmark Life Sciences Ltd.’s continued to witness strong retail investor interest on the third and final day of bidding.
The IPO was subscribed nearly six times on the third day, led by retail demand. Institutional and non-institutional partnership also picked up pace.
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 kilolitres. 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.
The IPO will close on July 29.
Subscription Details: Day 3
The IPO was subscribed 6.87 times as of 11:00 a.m. on July 29.
Institutional subscription: 1.43 times
Non-institutional subscription: 5.05 times
Retail subscription: 10.75 times
Watch BloombergQuint’s IPO Adda With Glenmark Life Sciences’ MD & CEO Yasir Rawjee: