Glenmark Life Sciences (GLS), a unit of Glenmark Pharmaceuticals is among a long list of companies queuing for an initial public offering. The company filed for an updated draft red herring prospectus (DRHP) last week. GLS’ Rs 1,600-crore IPO is likely to be launched later in July.
While Glemark has not officially said anything on the matter, sources told The Economic Times that they are aiming to hit the primary markets next week.
Glenmark Life Sciences’ IPO comprises a fresh issue of Rs 1,160 crore and a sale of 7.3 million shares by promoter Glenmark Pharmaceuticals.
The company is the fifth to launch an IPO in July after GR Infraprojects, Clean Science and Technology, Zomato, and Tatva Chintan Pharma.
According to the DRHP, the proceeds of the IPO would be used for payment of “outstanding purchase consideration to the promoter for the spin-off of the API business”, funding capital expenditure requirements, and for general corporate purposes.
“We wish to inform you that Glenmark Life Sciences Limited, a wholly-owned subsidiary of Glenmark Pharmaceuticals Limited, has today, i.e. on April 16, 2021, filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offer, comprising of a fresh issue of up to Rs 11,600 million and an offer for sale of up to 7,305,245 equity shares of Rs 2 each of Glenmark Life Sciences Limited, by Glenmark Pharmaceuticals Limited. The IPO will be subject to market conditions, receipt of applicable approvals, and other considerations,” the firm said in a disclosure to the exchanges on April 26.
GLS develops and manufactures high-value, non-commoditized APIs. Its products are used to treat illnesses related to diabetes, infections, the central nervous system, etc.