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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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 - Anusha And Karan Kundra Break Up: Shibani Dandekar Opens Up On Sister’s Break Up With Karan Kundra | Watch Now

Glenmark Life Sciences IPO Subscription Status, Share Allotment

Glenmark Life Sciences IPO: Know GMP, allotment & listing dates, other details

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Glenmark Life Sciences IPO | Photo Credit: Representative Image

Key Highlights The price band for the Glenmark Life Sciences IPO was fixed between Rs 695 and Rs 720 per share The finalisation of the basis of allotment for the issue is likely to be done on August 3, 2021 and the shares are likely to be credited to your demat account by August 5, 2021 Glenmark Life Sciences GMP on day 3 of its subscription stood at Rs 140

The Rs 1,514-crore Glenmark Life Sciences Limited (GLSL) Initial Public Offer (IPO) received 5.78 times bids on the second day of its subscription on Wednesday.

Glenmark Life Sciences IPO received bids for 8,68,07,640 shares against 1,50,18,279 on offer, accordion to date from the National Stock Exchange (NSE) data. The Qualified institutional buyers (QIBs) portion got bids for 1.38 times, the non-institutional investors category got subscribed by 3.39 times and retail individual investors bid for 9.28 times the shares reserved for the category.

The price band for the Glenmark Life Sciences IPO was fixed between Rs 695 and Rs 720 per share. So far the issue has elicited a robust response reflected in the grey market premium that it was seen commanding.

Glenmark Life Sciences Grey Market Premium (GMP) on day 3 of its subscription stood at Rs 140, suggesting decent listing gains of 20% for investors at the upper band of the issue.

The finalisation of the basis of allotment for the issue is likely to be done on August 3, 2021 and the shares are likely to be credited to your demat account by August 5, 2021. The tentative date for the listing of shares is August 6, 2021.

Glenmark Life Sciences IPO & company background

The GLS IPO comprised of a fresh issue amounting to Rs 1060 crore and Offer for Sale (OFS) of up to 6,300,000 equity shares by the promoter. The company, a subsidiary of Glenmark Pharmaceuticals Limited, will not receive any proceeds from the OFS as proceeds will go to selling shareholders.

The amount raised from the fresh issue will be utilised for payment of outstanding purchase consideration to the Promoter for the spin-off of the API business amounting to Rs 800 crore, funding capital expenditure requirements to the tune of Rs153 crore and general corporate purposes, as pre IPO papers filed with market regulator Securities & Exchange Board of India (SEBI).

The company is a leading developer and manufacturer of select high value, non-commoditized active pharmaceutical ingredients (APIs) in chronic therapeutic areas, including cardiovascular disease (CVS), central nervous system disease (CNS), pain management and diabetes. As of March 31st, 2021, they had a portfolio of 120 molecules and are adding on average 8-10 new molecules annually. They are also providing contract development and manufacturing operations (CDMO) services to pharmaceutical companies.