India’s Glenmark Life Sciences files for IPO to raise funds

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.

This article was first published on livemint.com.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.