Glenmark Life Sciences, a company that produces active pharmaceutical ingredients, is planning to raise funds from the primary market.
Another pharma company is preparing to make its presence felt in the stock market. Glenmark Life Sciences Ltd, a company producing active pharmaceutical ingredients (API), plans to raise funds from the primary market to expand its business and meet capital requirements.
For this, the company will launch an IPO this year. Let us know that the API company Glenmark Life Sciences Limited is a subsidiary of Glenmark Pharmaceuticals. Glenmark Life Sciences filed a Red Herring Prospectus (DRHP) on Saturday with market regulator SEBI for its IPO.
Glenmark Life Sciences will issue fresh shares worth Rs 1,160 crore for this IPO and 73,10,000 equity shares through Offer for Sale (OFS). Glenmark Pharma has a 100% stake in the company.
Of the funds raised through fresh shares, Rs 900 crore will be used by the company to purchase API business. The remaining Rs 152.76 crore will be used to meet the needs of the capital expenditures. The company relies on its API business for revenue. 84.16% of the company in 2019 and 89.87% of the revenue in the year 2020 came from API business.
Glenmark Life Sciences has roped in Goldman Sachs, Kotak Mahindra Capital, Bank of America Securities, BoFa Securities, DAM Capital, Bank of Baroda Capital (BoB Caps) and SBI Capital Markets for the IPO. Appointed lead manager.
This is the company’s balance sheet
The company’s total income stood at Rs 1549.30 crore in FY20, compared to only Rs 886.87 crore a year ago. Net profit of the company during this period was Rs 313.10 crore as against Rs 195.59 crore in the previous year. The total debt on the company as of December 2020 was Rs 947.44 crore.
This company does business
Glenmark Life Science manufactures raw materials used in medicine. The company is among the leading companies manufacturing high value non-commoditized active pharmaceutical ingredients in the country. The company produces APIs used in the manufacture of medicine to treat chronic therapeutic areas.
