Glenmark Life Sciences IPO opens Today; grey market premium at 20%, should you subscribe?

The public issue consists of a fresh issue of equity shares worth Rs 1,060 crore and an offer for sale by existing shareholders worth Rs 453 crore.

Glenmark Life Sciences said that it will use the fresh issue amount for the payment of outstanding purchase consideration for the spin-off of the API business and funding capital expenditure requirements.

Shares of Glenmark Life Sciences were trading with a weak premium in the grey market ahead of the IPO, Manan Doshi, Cofounder of UnlistedArena, a firm dealing in unlisted & pre-IPO shares told Financial Express Online.

“The company is also a leading developer and manufacturer of select high value, non-commoditised APIs in chronic therapies and works with 16 of the 20 largest generic companies globally,” the brokerage firm said in a note.

“We assign a “Subscribe” rating for the issue on a long-term basis considering its strong focus on R&D, expansion plans which appears fairly priced.

Glenmark Life Sciences is well placed in the API business with a product portfolio of 120 products including therapy areas like cardiovascular, CNS, diabetes, anti-infectives, said Religare Broking.

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