Glenmark Life Sciences IPO Subscription Status, Share Allotment; Details Inside

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New Delhi: Glenmark Life Sciences IPO Subscription is closing today. The three-day period for the initial public offering was opened on July 27, Tuesday. Glenmark Life Sciences IPO size is Rs 1,513 crore.Also Read - Anushka Sharma Is Unable To ‘Sleep Peacefully’ As She Cannot Get Over Bachpan Ka Pyaar Viral Video

Glenmark Life Sciences IPO Subscription Status, Share Allotment

Glenmark Life Sciences IPO last day today: Should you subscribe? Grey market premium moderate, strong response

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Last day to bid for Glenmark Life Sciences IPO.

Glenmark Life Sciences’ Rs 1,541-crore IPO (initial public offering) entered the final day of bidding today. The IPO has so far elicited a strong response from all pockets of investors despite the weak secondary market sentiment. A subsidiary of the publicly traded Glenmark Pharmaceuticals, the company is a developer and manufacturer of high value, non-commoditized APIs in chronic therapeutic areas with a strong partnership with global players. The company will join peers such as Divis Laboratories, Laurus Labs, Solara Active Pharma Sciences, and Shilpa Medicare on the bourses. In the grey market, shares of Glenmark Life Sciences have been trading with a moderate premium.

Also Read: Glenmark Life Sciences IPO: Check subscription update, grey market premium

Entering the final day of the subscription window, Glenmark’s IPO has so far been subscribed 5.9 times already. Retail investors have placed the most bids for the issue, subscribing their portion 9.51 times, bidding for 6.99 crore shares. Non-institutional investors have bid for the issue 3.48 times or 1.09 crore equity shares. Qualified Institutional Buyers (QIB) have bid for 1.4 times their portion or 58.65 lakh shares. The Rs 1,541 crore IPO of Glenmark Life Sciences is a mix of an offer for sale (OFS) and a fresh issue of equity shares.

Should you subscribe?

Glenmark Life Sciences has a portfolio of 120 molecules, with most of these being non-commoditized. “Commoditized are simpler molecules and non-commoditized molecules are large and complex and mainly command higher pricing than commoditized molecules,” said Ashika Stock Broking in a note. On the higher price band, Glenmark Life Sciences demands a P/E multiple of 25.1x based on FY21 post issue fully diluted EPS, the note said. Listed peers, however, are trading in the range of 30x – 60x and the industry average is at 40x. And hence Glenmark Life Sciences is seen to be valued at a discount to peers.

“GLS has a good performance execution and clean regulatory track record. Given the healthy growth prospects, a leading manufacturer of select high-value non-commoditised APIs in chronic therapies, expanding manufacturing facility, expanding R&D infrastructure, servicing new markets, explore new product, strong financials, healthy balance sheet and strong promoter backing with synergies augur well for the company’s performance going forward. Hence, it is recommended to “SUBSCRIBE” the issue,” Ashika Stock Broking said.

At the upper price band, analysts at Prabhudas Lilladher say the company is attractively valued at 22.1x FY21 PER. The brokerage firm also has a ‘Subscribe’ rating on the issue. Leading manufacturing capabilities in key APIs, strong relationship with global clients, cost leadership, quality-focused compliant production & R&D infrastructure, and experienced management team are seen as positive for Glenmark Life Sciences.

Glenmark Life Sciences IPO: What GMP signaling on last date of subscription

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Glenmark Life Sciences IPO: ₹1,514 crore initial public offer of Glenmark Life Sciences got subscribed 5.78 times by day 2 and there is still one full day left for bidders to apply for the IPO. On account of overwhelming response from the bidders, Glenmark Life Sciences shares are doing well in the grey market too. Glenmark Life Sciences IPO GMP today is ₹140, which is ₹15 up from its Wednesday price in the grey market. According to market observers, Glenmark Life Sciences IPO grey market premium has been oscillating around ₹125 to ₹140 for the last three days that means market is expecting around 18 to 20 per cent listing gain from the public issue. They said that today is the last date of bidding and those who were in wait and watch, may come forward to bid for the IPO as the stock has remained strong in the grey market on first two days of bidding.

What this GMP means for Glenmark Life Sciences IPO

Market observers said that grey market premium of a public issue is an unofficial market expectation about the listing gains. As Glenmark Life Sciences IPO grey market premium today is ₹140, its expected listing price in the grey market is around ₹860 ( ₹720 + ₹140) — around 20 per cent higher from its issue price band of ₹695 to ₹720. For the last three days, Glenmark Life Science IPO GMP has been oscillating around ₹125 to ₹140. Yesterday, it was at ₹125, while on Tuesday it was ₹141. So, those investors who look at the GMP before going into the financials of the company, may get attracted by this grey market performance of the public issue and surprising response from the bidders is expected by the bidders as subscription is open for today only, said market observers.

Highlighting the financials that augurs strong listing of the shares; Saurabh Joshi Research Analyst at Marwadi Shares and Finance said, “Considering the FY-21 adjusted EPS (Earnings Per Share) of ₹28.69 on post-issue basis, the upper price band implies a P/E multiple of 25.09 with a market cap of ₹88,220 mn, while its peers namely Divi’s Laboratories, Laurus Labs and Shilpa Medicare are trading at a P/E multiple of 64.0, 36.1 and 36.5 respectively. We recommend to subscribe this IPO as the company is a leader in select high value, non-commoditized APIs in chronic therapeutic areas with quality-focused & compliant manufacturing / R&D infrastructure and is available at reasonable valuation as compared to its peers.”

Standing in sync with Saurabh Joshi’s views; Abhay Doshi, Founder, UnlistedArena.com said, “The issue looks moderately priced. Owing to the buzz in primary market, the issue should witness good subscription today.”

Glenmark Life Sciences IPO details

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