get great returns on investing
Glenmark Life Sciences’ IPO is engaged in raising Rs 1514 crore for investment. In such a situation, it is being told as a golden opportunity, according to the experts, you can get good returns by investing money now.
New Delhi. The Initial Public Offer (IPO) of Glenmark Life Sciences has opened for subscription today. The company and its shareholders are looking to raise Rs 1514 crore from primary market investors.
Most of the analysts are looking positive on the future prospects of the company and suggest a buy for the stock. He believes that the company, which is a spin-off of Glenmark Pharma, is well positioned in the Active Pharmaceutical Ingredient (API) business. In such a situation, it is being called a profitable deal, in which big profits can be found by investing.
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Taking into account the FY-21 adjusted EPS of Rs 28.69 on a post-issue basis, the upper price band implies a P/E of 25.09, with a market capitalization of Rs 8,822 crore, while around that of Divij Laboratories, Laurus Labs and Shilpa are doing business on Medicare. The P/E is 64.0, 36.1 and 36.5, respectively.
The price band of the offer has been fixed at Rs 695-720. Of the shares available for sale, 50 per cent will be reserved for eligible organizational investors, 35 per cent for retail and 15 per cent for HNIs.
The proceeds from the offer of sale will go to the selling shareholders, while the proceeds from the sale of the fresh issue will be used to pay the outstanding purchase consideration to the promoter for the spin-off of the API business (Rs 800 crore). Funding for capital expenditure requirements (Rs 153 crore) and general corporate purposes.
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The company currently operates four multi-purpose manufacturing facilities which are leasehold properties located at Ankleshwar and Dahej in the state of Gujarat and at Mohol and Kurkumbh in the state of Maharashtra.
The global API market was estimated to be around USD 181.3 billion in FY20 and is expected to grow at a CAGR of 6.2 per cent by FY2026. The major clients of Glenmark Life include Glenmark, Teva Pharma Industries, Torrent Pharmaceuticals, Aurobindo Pharma, Krka etc.
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