Glenmark Pharmaceuticals subsidiary Glenmark Life Sciences to raise ₹1,060 crore through IPO

• Glenmark Life Sciences will reportedly launch its IPO on July 27.
• Parent company Glenmark Pharmaceuticals will reduce its stake in the company and make an offer for sale of up to 63 lakh shares.
• The stock will reportedly be listed on August 6 on exchanges.
  

While the year 2021 has already seen 35 initial public offerings (IPO) on exchanges, there are many more in the queue. Glenmark Pharmaceuticals’ subsidiary Glenmark Life Sciences is next in line to launch its initial share sale. The company has announced to raise ₹1,060 crore through the IPO.

The offer is reportedly said to start on July 27 and close on July 29. Shares of the company are expected to list on bourses on August 6.

The IPO will consist of an offer for sale (OFS) of up to 63 lakh shares by parent company Glenmark Pharmaceuticals.

The company intends to use the proceeds from the IPO for capital expenditure requirements which includes the expansion of capacity at the Dahej (Gujarat) manufacturing site to meet the anticipated future demand of its generic active pharmaceutical ingredients (API) products.

Glenmark Life Science is a leading developer and manufacturer of select high value, non-commoditised APIs in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management and diabetes, the company mentioned in DRHP filings.

It currently operates four multi-purpose manufacturing facilities which are situated on leasehold properties located at Ankleshwar and Dahej in Gujarat and Mohol and Kurkumbh in Maharashtra.


"Over the years, we have established strong relationships with leading global generic pharmaceutical companies that have helped us expand our product offerings and geographic reach. As of March 31, 2021, 16 of the 20 largest generic companies globally were our customers,” the company said in the draft red herring prospectus filing (DRHP).

Further, it is looking to expand presence in countries and regions that are adopting a more stringent regulatory framework and are moving towards becoming well-regulated markets such as South Korea, Taiwan, Russia, Brazil, Mexico and Saudi Arabia.

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