Glenmark looks at the perfect time for its API wing to fly and go public

Jun 09, 2021 | 1 min Read

Amidst the second wave of the COVID-19 pandemic, and many fearing the third wave, the healthcare sector is in the spotlight, with numerous pharma and life sciences businesses planning IPOs in the coming months.

GLS, the Active Pharmaceutical Ingredient (API) arm of Glenmark Pharmaceuticals plans to hit the IPO market to use the proceeds to reduce debt and eyeing a premium valuation backing on the stellar return pharma companies hitting the market have given to the investors.

Its inception dates back in 2001 as an API business of Glenmark Pharma which was spun off into Glenmark Life Sciences in 2019. Since then, the company has grown into a leading API manufacturer which recently achieved milestone of 399 cumulative drug master files (DMFs) across multiple markets globally. GLS also partners with 16 of the top 20 generic companies around the world.

GLS has its manufacturing set up at Mohol and Kurkumbh in Maharashtra for APIs and intermediates and at Ankleshwar and Dahej in Gujarat for APIs. GLS has a production capacity of about 450 MT per annum. GLS’ EBITDA margin for the first nine months of FY21 stood at 29.78 per cent. Its PBT for year ended December 2020 stands at ₹3303.22 million with an EPS of 22.90.

The Mumbai-based drug-maker Glenmark Pharmaceuticals is readying for an initial public offering of its wholly owned subsidiary Glenmark Life Sciences (GLS), with the firm aiming fresh issue aggregating up to ₹ 11,600 million and Offer for Sale of up to 7,305,245 Equity Shares by the Promoter in this financial year. What do you think about Glenmark Life Sciences IPO? (Tag financial experts, if allowed).