GLENMARK LIFE SCIENCES IPO

IPO Details:

Price Band: 695-720

Cutoff Price: 720

About Company:

Glenmark Life Science is a leading developer and manufacturer of select high value, non-commoditized active pharmaceutical ingredients (“APIs”) in chronic therapeutic areas, including cardiovascular disease (“CVS”), central nervous system disease (“CNS”), pain management and diabetes. Company manufacture and sell APIs for gastro-intestinal disorders, anti-infectives and other therapeutic areas. API portfolio comprises specialized and profitable products, including niche and technically complex molecules. Company has strong market share in select specialized APIs such as Telmisartan (anti-hypertensive), Atovaquone (anti-parasitic), Perindopril (antihypertensive), Teneligliptin (diabetes), Zonisamide (CNS) and Adapalene (dermatology). They are also increasingly providing contract development and manufacturing operations (“CDMO”) services to a range of multinational and specialty pharmaceutical companies. Company is a research and development (“R&D”)-driven API manufacturer, focused on undertaking dedicated R&D in existing products and in areas where there is growth potential in the future. Company believe that maintaining high standards of process innovation and quality in R&D and manufacturing operations is critical to brand and maintenance of long-term relationships with customers.

Competitive Strengths:

1. Leadership in Select High Value, Non-Commoditized APIs in Chronic Therapeutic Areas;

2. Strong Relationships with Leading Global Generic Companies;

3. Quality-Focused Compliant Manufacturing and R&D Infrastructure;

4. Strong Focus on Sustainability in Operations;

5. Cost Leadership across Products through Careful Monitoring and Continuous Effort;

6. Experienced Management Team with Proven Track Record.

Strategies:

1. Expand the Geographic Focus, API Portfolio and Scope of our Operations;

2. Grow our CDMO Business;

3. Expand our Production Capacities;

4. Improving Financial Performance through Focus on Operational Efficiencies;

Financial Performance:

Company revenue, net profit and EPS are positive and increasing year on year. With current EPS of 32.61 for financial year 2021, PE of the Glenmark Life Science is 22.08.

Objects of the Issue:

The Net Proceeds from the Issue are proposed to be utilised in the following manner:

1. Offer for Sale

Competitors Comparison:

Glenmark Life Sciences IPO seems to be undervalued based on the P/E ratio but it is overvalued based on the Price to book value.

Grey Market Premium:

Our view: GMP of the IPO is decent and also the price is fairly valued after comparing it with listed competitors. We can expect this IPO to list at premium and hence I would be applying for this IPO for listing gains.

Disclaimer: Views are shared for an educational purpose. Please consult your financial advisor or planner before taking any action based on the views or facts shared on this blog.

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