Glenmark Life Sciences IPO subscribed 5.77 times on Day 2; public issue sees high interest among retail investers

The Glenmark Life Sciences initial public offering (IPO) was subscribed 5.77 times on Day Two of the issue. Out of the total 1,50,18,279 shares, bids were received by investors for 8,66,43,200 shares. Retail individual investors subscribed their portion 9.25 times, whereas, the portion reserved for non-institutional investors has been subscribed 3.39 times. Bidding for qualified institutional buyers opened today and the portion reserved for them was subscribed 1.38 times. As much as 35 percent of the Glenmark IPO has been reserved for retail investors, wehreas 15 percent of the issue has been reserved for non-institutional investors. Half of the issue (50 percent) has been reserved for qualified institutional buyers. Several experts have given the Glenmark IPO a subscribe rating. The company which manufactures active pharmaceutical ingredients (APIs) in chronic therapeutic areas plans to raise Rs 1,513.6 crore through its IPO. The price band has been fixed at Rs 695 to Rs 720. According to an The Economic Times>/em> report, Glenmark Life Sciences has four multi-purpose manufacturing facilities. These are located in Gujarat’s Dahej and Ankleshwar on leasehold properties. The company has one manufacturing unit each at Maharashtra’s Mohol and Kurkumbh. The IPO consists of fresh issues worth Rs 1,060 crore. It also comprises an offer for sale (OFS) of 63 lakh equity shares by its promoter Glenmark Pharma. The company is going to use proceeds from its fresh issue for payment of outstanding purchase and funding capital expenditure requirements. The amount will also be used for general corporate purposes. Shareholders selling their portion of shares will receive the proceeds from OFS.