Mumbai: Glenmark Life Sciences Ltd on Saturday filed a draft red herring prospectus with the Securities and Exchange Board of India to raise funds through initial public offering. The IPO will consist of a fresh issue of ₹1,160 crore and an offer for sale of up to 7.31 million shares by parent Glenmark Pharmaceuticals Ltd.
Glenmark Pharmaceuticals holds 100% stake in Glenmark Life Sciences.
Goldman Sachs, Kotak Mahindra Capital, BoFa Securities, DAM Capital, BoB Caps and SBI Capital Markets are the lead managers to the issue.
Proceeds from the fresh issue worth ₹900 crore will be used for the payment of outstanding purchase consideration to the promoter for the spin-off of the active pharmaceutical ingredients (API) business. ₹152.76 crore will be used for funding capital expenditure requirements.
The company depends on API business and for the fiscal 2020 and 2019, its API operations contributed 84.16% and 89.87% of its total revenue from operations respectively.
For the fiscal year 2020, the total income of the company stood at ₹1549.30 crore versus ₹886.87 crore a year ago. Net profit for the period stood at ₹313.10 crore against ₹195.59 crore last year. As of December 2020, net debt of the company stood at ₹947.44 crore.
Glenmark Life Science is a leading developer and manufacturer of select high value, non-commoditized active pharmaceutical ingredients in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management and diabetes.
As of December 2020, the company had a portfolio of 120 molecules globally and sold APIs in India and exported to multiple countries in Europe, North America, Latin America, Japan and the rest of the world. As of 7 April, the company had filed 399 drug master files (DMFs) and certificates of suitability to the monographs of the European Pharmacopoeia across various major markets.
