Glenmark Life Sciences

IPO Size

`1513.60 Cr

Price Band

`695-720 Per Share

Minimum Lot Size

20 Share

Face Value

`2 Per Share

Employee Discount


Retail Allocation


Issue Open Date

27 July, 21

Issue Close Date

29 July, 21

Listing Date

06 Aug, 21

About the Company:

Glenmark Life Sciences is a wholly-owned subsidiary of Glenmark Pharmaceuticals Ltd. after it acquired 100% equity interest on July 10, 2018. On January 1, 2019, the API business of Glenmark comprising of manufacturing facilities, movable assets, intellectual property, employees and all the liabilities attributable to the API business was spun off into our Company (the “Spin-off”).

The API firm of Glenmark is a leading developer and manufacturer of select high value, non-commoditized active pharmaceutical ingredients (“APIs”) in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management and diabetes. The company also manufactures and sells APIs for gastro-intestinal disorders, anti-infectives and other therapeutic areas. The API portfolio comprises specialized and profitable products, including niche and technically complex molecules. The firm has strong market share in select specialized APIs such as Telmisartan (anti-hypertensive), Atovaquone (anti-parasitic), Perindopril (antihypertensive), Teneligliptin (diabetes), Zonisamide (CNS) and Adapalene (dermatology). The company is increasingly providing contract development and manufacturing operations services to a range of multinational and specialty pharmaceutical companies.


Outstanding Litigation:

S.No. 1 - Company 2 - Promoters 3 - Directors
Entity Name By the Company Against the Company By the Promoters Against the Promoters By the Directors Against the Directors
Criminal cases 1 - 2 6 - -
Material civil cases - 5 - - - -
Taxation matters - 8 - 34 - -
Regulatory Procedings - - - 13 - 1
Amt. (In Million Rs.) Not Quantifiable 47.93 4.29 2888.7 - 0.89


Financial Statements:

Income Statement (In Millions)   FY21 FY20 FY19
Gross Operating Income 18859.76 15493.03 8868.65
Cost of Employee & Inventory 10546.28 8327.38 4585.78
Other Expenses 2394.63 2326.15 1801.23
EBITDA 5918.85 4839.5 2481.64
Depreciation 333.94 293.68 192.62
Interest  875.47 335.15 6.05
Profit Before Tax 4709.44 4210.67 2282.97
 Tax 1193.63 1079.69 327.05
Profit After Tax   3515.81 3130.98 1955.92


On financials front, the company has delivered a growth in revenues by 45.8% in last two years. EBITDA margins of the company stood at 31.38% and constant on yearly basis. The firm is completely debt-free but was paying interest due to purchase consideration from Glenmark pharmaceuticals. The net proceeds will square off the business purchase consideration amount that will increase their profits and EPS further. Company has positive cash flows at Rs. 115.6 cr. and able to fund their working capital requirements. 64% of the total cost is allocated to cost of raw materials and any surge in the raw material cost could dampen the margins. The firm has highest Return on Net Worth at 46.71%, much higher than the listed peers. Considering the upper price band at Rs. 720 and FY21 Earning Per Share (EPS) of Rs. 32.61, the company is demanding a P/E multiple of 22.07x, much lower than the Industry P/E of 39.88x.

Promoter of the Company

The promoter of the company is Glenmark Pharmaceuticals Limited.

Peer Comparison

The company will face tough competition from Divis Laboratories, Lauras Labs, Shilpa Medicare, Aarti Drugs and Solara Active Pharma Sciences.

Objectives of the Issue

Offer for Sale

object of the Offer for Sale is to allow the shareholders to sell an aggregate of up to 63,00,000 equity Shares held by them amounting at Rs. 453.60 cr. The company will not receive any proceeds from the Offer for Sale.

Fresh Issue

The company has planned to raise fresh capital comprising an aggregate of 1,47,22,222 equity shares having Face Value ₹2 aggregating up to Rs. 1,060 Cr at the upper price band of Rs. 720. Out of the net proceeds : An amount of Rs. 800 cr. will be allocated for payment of outstanding purchase consideration to the promoter for the spin-off of the API business from the promoter into the Company pursuant to the Business Purchase Agreement dated October 9, 2018. An amount of Rs. 152.76 cr. will be utilized for funding capital expenditure requirements . Rest will be utilized for general corporate purpose.

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