Glenmark Life Sciences
Mainboard₹1,514 Cr issue
+4.32%
Listing gain over issue price
Issue size
₹1,514 Cr
1 lot at cut-off
₹14,400
Lot size
20shares
Open
27 Jul 2021
Close
29 Jul 2021
Allotment
03 Aug 2021
Listing
06 Aug 2021
Listing performance
Issue price
₹720
Listed at
₹751.10
Listing-day close
₹748.50
Latest price
₹1,250.60
Close on 23 Oct 2026
Listing gain
+4.32%
Return since issue
+73.69%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Jul 2021 – 29 Jul 2021
- Listing date
- 06 Aug 2021
- Face value
- ₹2 per share
- Issue price
- ₹720 per share
- Lot size
- 20 shares
- Total issue size
- ₹1,514 Cr
- Market cap at offer price
- ₹8,822 Cr
- Promoter holding
- 100.00% → 87.98% pre-issue → post-issue
- ISIN
- INE03Q201024
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- BOFA Securities India Ltd.
- Registered office
- Plot No.170-172, Chandramouli Industrial Estate, Mohol Bazarpeth, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 63,06,660 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 20 shares per lot, in multiples, at ₹720
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 20 | ₹14,400 |
| Retail (max) | 13 | 260 | ₹1,87,200 |
| S-HNI (min) | 14 | 280 | ₹2,01,600 |
| S-HNI (max) | 69 | 1,380 | ₹9,93,600 |
| B-HNI (min) | 70 | 1,400 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
63,06,660
Anchor portion
₹454 Cr
at ₹720 per share
Valuation and performance
Valuation at offer price
₹720 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹8,822 Cr |
About Glenmark Life Sciences
Glenmark Life Sciences Limited is an R&D-driven API manufacturer incorporated in 2011 as Zorg Laboratories Private Limited and subsequently acquired by Glenmark Pharmaceuticals Limited in July 2018. The company's API business was spun off from Glenmark Pharmaceuticals into the company effective January 1, 2019. The company manufactures select high-value, non-commoditized active pharmaceutical ingredients in chronic therapeutic areas including cardiovascular disease, central nervous system disease, pain management and diabetes, and also manufactures APIs for gastro-intestinal disorders, anti-infectives and other therapeutic areas. The company is increasingly providing contract development and manufacturing operations (CDMO) services to multinational pharmaceutical and specialty pharmaceutical companies. For FY 2021, the company generated total income of ₹18,859.76 million with profit after tax of ₹3,515.81 million.
Company Analysis
from RHPGlenmark Life Sciences is a leading developer and manufacturer of high-value, non-commoditized active pharmaceutical ingredients (APIs) in chronic therapeutic areas including cardiovascular disease, central nervous system disease, pain management and diabetes, with growing contract development and manufacturing operations (CDMO) services.
Glenmark Life Sciences Limited is an R&D-driven API manufacturer incorporated in 2011 as Zorg Laboratories Private Limited and subsequently acquired by Glenmark Pharmaceuticals Limited in July 2018. The company's API business was spun off from Glenmark Pharmaceuticals into the company effective January 1, 2019. The company manufactures select high-value, non-commoditized active pharmaceutical ingredients in chronic therapeutic areas including cardiovascular disease, central nervous system disease, pain management and diabetes, and also manufactures APIs for gastro-intestinal disorders, anti-infectives and other therapeutic areas. The company is increasingly providing contract development and manufacturing operations (CDMO) services to multinational pharmaceutical and specialty pharmaceutical companies. For FY 2021, the company generated total income of ₹18,859.76 million with profit after tax of ₹3,515.81 million.
Pharmaceutical manufacturingActive pharmaceutical ingredients (APIs)Contract development and manufacturing operations (CDMO)
Objects of the Issue
- Payment of outstanding purchase consideration to the Promoter for the spin-off of the API business from the Promoter into our Company pursuant to the Business Purchase Agreement dated October 9, 2018 ₹8,000.00 million p.20
- Funding the capital expenditure requirements ₹1,527.64 million p.20
- General corporate purposes ₹576.75 million p.20
- Payment of outstanding purchase consideration to the Promoter for the spin-off of the API business from the Promoter into our Company pursuant to the Business Purchase Agreement dated October 9, 2018 ₹8,000.00 million p.78
- Funding capital expenditure requirements for expansion of capacity at manufacturing facility located at Dahej, Gujarat including civil works, process equipment, utility equipment, HVAC system, and mechanical and insulation works ₹1,527.64 million p.78
- General corporate purposes including funding growth opportunities, strategic initiatives, joint-ventures, partnerships, marketing and business development expenses, expansion of facilities and meeting exigencies and expenses incurred in the ordinary course of business ₹576.75 million p.78
- Repayment of borrowings
Issue Structure
- Total Issue
- ₹15,136* million (21,022,222* equity shares at ₹720 per share)
- Fresh Issue
- ₹10,600* million (14,722,222* equity shares)
- Offer for Sale
- ₹4,536* million (6,300,000* equity shares by Glenmark Pharmaceuticals Limited)
- Price Band
- ₹695 to ₹720 per equity share
- Lot Size
- 20 equity shares and in multiples of 20 equity shares thereafter
- Face Value
- ₹2 per equity share
Business Model
The company earns revenue primarily from the sale of active pharmaceutical ingredients (APIs) to pharmaceutical companies. For FY 2021, the API business accounted for 90.63% of total revenue from operations. The company also generates revenue from contract development and manufacturing operations (CDMO) services provided to multinational pharmaceutical and specialty pharmaceutical companies. The company generates a significant portion of revenue from a limited number of key customers, with five largest customers accounting for 55.88% of total revenue in FY 2021, including the promoter which accounted for 40.86% of total revenue.
Business Segments
Manufactures and sells active pharmaceutical ingredients for cardiovascular disease treatments
Manufactures and sells active pharmaceutical ingredients for CNS, pain management and diabetes treatments
Manufactures and sells active pharmaceutical ingredients for gastro-intestinal disorders, anti-infectives and other therapeutic areas
Provides contract development and manufacturing operations services to multinational pharmaceutical and specialty pharmaceutical companies
Manufacturing of high-value, non-commoditized active pharmaceutical ingredients for chronic therapeutic areas including specialized and technically complex molecules; production of intermediate and finished API products through process equipment including reactors, centrifuges, dryers, condensers, filters and tanks
Development, manufacture and sale of APIs for cardiovascular disease treatment. As of March 31, 2021, commercialized API portfolio comprised 21 CVS products including Olmesartan, Amiodarone, Telmisartan, Perindopril, Rosuvastatin and Cilostazol.
Development, manufacture and sale of APIs for central nervous system disorders. As of March 31, 2021, commercialized API portfolio comprised 27 CNS products including Oxcarbazepine, Zonisamide, Topiramate, Bupropion, Ropinirole, Riluzole and Lacosamide.
Development, manufacture and sale of APIs for diabetes treatment. As of March 31, 2021, commercialized API portfolio comprised nine diabetes products including Glimepiride, Teneligliptin, Vildagliptin and Linagliptin.
Development, manufacture and sale of APIs for pain management. As of March 31, 2021, commercialized API portfolio comprised two pain management products: Etoricoxib and Lornoxicam.
Development, manufacture and sale of APIs for other therapeutic areas including gastro-intestinal disorders, anti-infectives, respiratory, anti-emetic and other therapeutic areas. Key products include Atovaquone, Voriconazole, Mirabegron, Desloratadine, Esomeprazole Magnesium, Adapalene and Fluconazole.
Contract development and manufacturing operations services to innovator and specialty pharmaceutical companies. Includes applying for and procuring permission to market products in regulated markets as well as contract manufacturing of APIs for utilization by pharmaceutical companies to make formulations.
Manufacture and sale of APIs for cardiovascular disease treatment
Manufacture and sale of APIs for central nervous system disease treatment
Manufacture and sale of APIs for diabetes treatment
Manufacture and sale of APIs for pain management
Manufacture and sale of APIs for gastro-intestinal disorders, anti-infectives and other therapeutic areas
Manufactures and sells generic active pharmaceutical ingredients
Provides contract development and manufacturing organization services
SWOT Analysis
Strengths
- • Leading developer and manufacturer of high-value, non-commoditized APIs in chronic therapeutic areas(p.20)
- • R&D-driven manufacturer with dedicated facilities and consistent investment(p.20)
- • Expanding CDMO service capabilities to multinational pharmaceutical companies(p.20)
- • Leadership in high-value, non-commoditized APIs in chronic therapeutic areas(p.85)
- • Strong relationships with leading global generic companies(p.85)
- • Quality-focused compliant manufacturing and R&D infrastructure(p.85)
- • Strong focus on sustainability in operations(p.85)
- • Cost leadership through continuous monitoring and effort(p.85)
- • Experienced management team with proven track record(p.85)
- • Leadership in select high-value, non-commoditized APIs in chronic therapeutic areas(p.127)
- • Strong relationships with 16 of the 20 largest generic companies globally(p.128)
- • Quality-focused, compliant manufacturing with no warning letters or import alerts from regulators(p.128)
- • High rate of repeat customers indicating strong customer loyalty(p.141)
- • Experienced management team with proven track record in global API industry(p.129)
- • Strong sustainability and environmental management initiatives including zero liquid discharge capabilities(p.129)
- • Portfolio of 120 molecules with 403 DMF/CEP filings across major regulated markets(p.127)
- • Cost leadership through operational initiatives and R&D-driven process optimization(p.129)
- • Established regulatory compliance and approvals across multiple markets(p.153)
- • Multiple manufacturing facilities across geographies(p.186)
- • Strong intellectual property portfolio(p.153)
- • Environmental and safety certifications(p.153)
Weaknesses
- • Dependent on limited number of key customers for significant portion of revenues(p.26)
- • High concentration of revenue from Promoter and Promoter Group(p.26)
- • Significant dependency on limited therapeutic categories and key products(p.27)
- • Manufacturing and R&D facilities concentrated in two Indian states(p.27)
- • Significant reliance on raw material sourcing from China and India(p.27)
- • All manufacturing facilities located on leasehold properties subject to renewal risk(p.40)
- • Significant outstanding liability to Promoter for business purchase consideration(p.32)
- • High employee attrition rates across multiple years(p.35)
- • High dependence on a single promoter shareholder for capital and control(p.68)
- • Outstanding purchase consideration liability to promoter(p.79)
- • Limited geographic diversification in manufacturing footprint(p.79)
- • Dependency on key customers with top five customers contributing over 50% of total revenue(p.141)
- • Reliance on raw material supplies from China and India with top three suppliers accounting for 40.26% of purchases(p.141)
- • Dependence on related party Glenmark as a major customer representing significant revenue concentration(p.141)
- • Manufacturing facilities concentrated in two states (Gujarat and Maharashtra) creating geographic risk(p.127)
- • High capacity utilization rates (85-88%) leaving limited buffer for demand spikes(p.139)
- • Limited proprietary brand ownership with trademark 'Glenmark' licensed from promoter(p.144)
- • High dependence on single promoter shareholder(p.169)
- • Significant outstanding purchase consideration liability to promoter(p.154)
- • Loss-making subsidiaries impacting group performance(p.176)
- • High finance costs from business acquisition debt(p.209)
- • High debt obligation to promoter from spin-off(p.277)
- • Dependence on limited customer base with credit terms(p.284)
- • Decline in CDMO business segment(p.280)
- • Significant outstanding purchase consideration to promoter(p.285)
Opportunities
- • Global API market expected to grow at CAGR of 6.2% to US$259.3 billion by FY 2026(p.20)
- • Indian bulk drug industry expected to grow at CAGR of 9.6% during FY 2021-2026(p.20)
- • Plans to enhance production capacity and expand manufacturing facilities(p.35)
- • Growth strategy focused on expanding CDMO, specialty and complex API businesses(p.35)
- • Expansion of capacity at manufacturing facility in Dahej, Gujarat(p.80)
- • Benefit from government Production Linked Incentive (PLI) scheme for APIs(p.99)
- • Localization of API manufacturing as India reduces dependence on China(p.99)
- • Participation in API Parks scheme supported by government financial assistance(p.99)
- • Growing demand for specialized drugs for chronic diseases in India(p.99)
- • Expansion into complex API market including oncology, peptides and injectables with higher growth rates(p.130)
- • Growing CDMO business opportunity serving innovator pharmaceutical companies(p.131)
- • Expansion into regulated markets including South Korea, Taiwan, Russia, Brazil and Mexico(p.130)
- • Capacity expansion plans to support generic and complex API business growth(p.130)
- • New greenfield manufacturing facility with 800 KL capacity and automation capabilities(p.130)
- • Global complex API market expected to grow at 10.9% CAGR from 2021-2026(p.112)
- • Global API market expected to grow at 6.2% CAGR with India showing highest growth at 9.5%(p.106)
- • Backward integration of key starting materials to reduce vendor dependence and improve margins(p.130)
- • Expansion into new markets and geographies(p.207)
- • Growing demand for active pharmaceutical ingredients globally(p.186)
- • Capacity expansion and modernization investments(p.181)
- • Development of new drug formulations and products(p.189)
- • Expansion into emerging markets and regulated markets(p.280)
- • Geographic diversification of revenue base(p.285)
- • Planned capacity expansion at key manufacturing facilities(p.283)
- • Growth in generics API sales(p.280)
Threats
- • COVID-19 pandemic and future pandemics could materially impact business operations and financial results(p.29)
- • Regulatory action and warning letters could significantly impact business operations(p.26)
- • Pricing pressure from customers may erode margins(p.30)
- • Intense pharmaceutical industry competition may affect market share and profitability(p.38)
- • Significant foreign exchange exposure with limited hedging(p.38)
- • Discontinuation or reduction of export incentive schemes may adversely affect results(p.39)
- • Indian economy vulnerability to macroeconomic and political factors(p.40)
- • Supply chain disruption from raw material vendor concentration(p.27)
- • Regulatory uncertainty from recent Finance Act, 2021 amendments affecting business operations(p.42)
- • India's sovereign credit rating downgrades affecting borrowing costs(p.42)
- • Volatility and potential rise in inflation affecting costs(p.43)
- • India's excessive dependence on China for APIs, feedstock and key starting materials(p.99)
- • Price control mechanisms under DPCO negatively impacting bulk drug manufacturing margins(p.99)
- • Rising employee compensation eroding competitive cost advantage in India(p.45)
- • Regulatory scrutiny from USFDA on drug manufacturing quality and impurity standards(p.99)
- • High competition from Chinese API manufacturers with cost advantages and 40% global API supply share(p.109)
- • Rising pricing pressure in pharmaceutical industry affecting margins(p.100)
- • Regulatory pricing controls in multiple markets limiting pricing flexibility(p.101)
- • Import dependency on China creating supply chain vulnerability(p.110)
- • Supply disruptions from environmental regulations in China impacting cost structure(p.122)
- • Highly fragmented API market with approximately 1,500 manufacturing plants creating intense competition(p.143)
- • Regulatory stringency requirements increasing compliance costs and complexity(p.107)
- • Regulatory changes in pharmaceutical sector(p.150)
- • Complex labor law compliance requirements(p.151)
- • Foreign exchange volatility and currency risks(p.184)
- • Intellectual property infringement and trademark protection risks(p.149)
- • Price control and regulatory pressure on drug pricing(p.289)
- • Raw material price and supply volatility(p.284)
- • Foreign exchange exposure from exports and imports(p.284)
- • Increasing competitive pressures in the industry(p.285)
- • Concentration of sourcing in China and India(p.285)
- • Quarterly revenue fluctuations(p.285)
- • Environmental and regulatory compliance obligations(p.294)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Glenmark Pharmaceuticals Limited | Promoter/Promoter Selling Shareholder | 100.00% | 82.84% |
| Glenmark Pharmaceuticals Limited | Promoter | 100% | 87.98% |
| Glenmark Pharmaceuticals Limited | Promoter | 100% | — |
| Glenmark Pharmaceuticals Limited | Promoter | 100% | — |
| Glenmark Pharmaceuticals Ltd. | Promoter/Parent Company | 100% | — |
| Glenmark Pharmaceuticals Limited | Promoter/Parent Company | 100% | — |
| Glenmark Pharmaceuticals Limited | Promoter Selling Shareholder | — | — |
Leadership
Dr. Yasir Rawjee · Managing Director and Chief Executive Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Glenmark Life Sciences IPO FAQs
What is the lot size of Glenmark Life Sciences IPO?
The minimum lot size of Glenmark Life Sciences IPO is 20 shares. One lot costs ₹14,400 at the cut-off price.
When does Glenmark Life Sciences IPO open and close?
Glenmark Life Sciences IPO opened for subscription on 27 Jul 2021 and closed on 29 Jul 2021.
What is the listing date of Glenmark Life Sciences IPO?
Glenmark Life Sciences IPO listed on 06 Aug 2021.