About the Company:
Glenmark Life Sciences Ltd 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 also manufactures and sells APIs for gastro-intestinal disorders, anti-infectives and other therapeutic areas.
Company’s API portfolio comprises specialized and profitable products, including niche and technically complex molecules.
Company is also increasingly providing contract development and manufacturing operations (“CDMO”) services to a range of multinational and specialty pharmaceutical
companies.
As of March 31, 2021, company had a portfolio of 120 molecules globally and sold APIs in India and exported APIs to multiple countries in Europe, North America, Latin
America, Japan and the rest of the world.
Glenmark Pharmaceuticals Group:
Glenmark Life Sciences Ltd is a wholly-owned subsidiary of our Promoter, Glenmark Pharmaceuticals Limited (“Glenmark”), a research-oriented, innovation led, global pharmaceutical company, which was established in 1977 and is listed on the BSE and NSE.
In 2001-2002, Glenmark launched the API manufacturing business by setting up a manufacturing facility in Kurkumbh in the state of Maharashtra, India and focused on growing this business over the next 18 years.
Company’s Manufacturing Facilities:
Company currently operates four multi-purpose manufacturing facilities which are situated on leasehold properties located at Ankleshwar and Dahej in the state of Gujarat, India, and Mohol and Kurkumbh in the state of Maharashtra, India with an aggregate annual total installed capacity of 726.6 KL as of March 31, 2021.
Company intends to increase API manufacturing capabilities by enhancing the existing production capacities at Ankleshwar facility during the financial year 2022 and Dahej facility during the financial years 2022 and 2023 by an aggregate annual total installed capacity of 200 KL.
Setting up New Manufacturing facility:
Company intends to develop a new manufacturing facility in India for the manufacture of generic APIs from the financial year 2022 which is expected to become operational in the fourth quarter of the financial year 2023.
The new facility will also provide a platform for the growth of our CDMO business and also add capacity for our generic API business.
This facility will be a greenfield project built on a 40-acre footprint with a plan to manufacture both APIs and intermediates and will house several multi-purpose
manufacturing blocks with mid to high-volume capacity.
It will include a high degree of automation and comply with global regulatory standards, and will have an aggregate capacity of 800 KL over the next three to four
years.
Company’s Customers:
Over the years, company has established strong relationships with leading global generic pharmaceutical companies that has helped company to expand the service offerings and geographic reach. As of March 31, 2021, 16 of the 20 largest generic companies globally were company’s customers.
Company’s key customers, including Glenmark, Teva Pharmaceutical Industries, Torrent Pharmaceuticals, Aurobindo Pharma, Krka and another company which is a global leader in generic pharmaceuticals and biosimilars.
Competitors in the Business:
The API market is highly fragmented with approximately 1,500 API manufacturing plants. The top 14-16 API players comprised just 16-17% of the total market share.
Company’s key competitors in the API market include Laurus Labs, Divis Labs, Shilpa Medicare, Aarti Drugs and Solara Active Pharma Sciences.
Management Team:
Mr. Glenn Saldanha (Designation: Chairman and Non-Executive Director)
Mr. Yasir Rawjee (Designation: Managing Director and Chief Executive Officer)
Objectives of the Issue:
Fresh Issue: (Rs.1060 cr)
- 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.
- Funding capital expenditure requirements.
- General corporate purposes.
Offer for Sale: (Rs.453 cr)
- The proceeds from the Offer for Sale shall be received by the Selling Shareholders.Company will not receive any proceeds from the Offer for Sale.
Positives for the Company:
Leadership in Select High Value, Non-Commoditized APIs in Chronic Therapeutic Areas.
- Company is a leading developer and manufacturer of select high value, non-commoditized APIs in chronic therapeutic areas, including CVS, CNS and pain management and diabetes.
- As of March 31, 2021, company sold APIs in India and exported APIs to multiple countries in Europe, North America, Latin America, Japan and Rest of the world.
Strong Relationships with Leading Global Generic Companies.
- Over the years, company has established strong relationships with leading global generic pharmaceutical companies which has helped company to expand the product offerings and geographic reach. As of March 31, 2021, 16 of the 20 largest generic companies globally are company’s customers.
Quality-Focused Compliant Manufacturing and R&D Infrastructure.
- Company currently operates four multi-purpose manufacturing facilities which are situated on leasehold properties located at Ankleshwar and Dahej in the state of Gujarat, India, and Mohol and Kurkumbh in the state of Maharashtra, India with an aggregate annual total installed capacity of 726.6 KL as of March 31, 2021.
Expand the Geographic Focus, API Portfolio and Scope of company’s Operations.
- Company intends to expand the size and scope of business by diversifying company’s customer base in existing markets and increasing the geographic market coverage.
- Company intends to expand the presence in countries/regions that are adopting a more stringent regulatory framework and are moving towards becoming well-regulated markets such as South Korea, Taiwan, Russia, Brazil, Mexico and Saudi Arabia.
- Company also intends to create new opportunities in ROW (rest of the world) markets by utilizing manufacturing in the least developed countries through local partnerships.
Company has growth plans by expanding the Production Capacities.
- Company currently operates four multi-purpose manufacturing facilities with an aggregate annual total installed capacity of 726.6 KL as of March 31, 2021.
- Company also intends to increase the API manufacturing capabilities by enhancing the existing production capacities at Ankleshwar facility during the financial year 2022 and Dahej facility during the financial years 2022 and 2023 by an aggregate annual total installed capacity of 200 KL.
- This additional production capacity is expected to help company to further expand the generic API production and also grow the oncology product pipeline.
- Company also intends to develop a new manufacturing facility in India for the manufacture of generic APIs from the financial year 2022 which is expected to become operational in the fourth quarter of the financial year 2023.
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 |
|---|---|---|---|
| Revenue | 1405.4 | 1549.3 | 1885.9 |
| Net Profit | 292.6 | 313.0 | 351.5 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Glenmark Life Sciences Ltd | 2 | 32.61 | 22.07 | 46.71% | 69.82 |
| Divis Laboratories Ltd | 2 | 74.75 | 63.65 | 21.35% | 350.12 |
| Laurus Labs Ltd | 2 | 18.28 | 36.59 | 37.87% | 48.41 |
| Shilpa Medicare Ltd | 1 | 18.13 | 33.37 | 9.99% | 181.37 |
| Aarti Drugs Ltd | 10 | 30.09 | 24.28 | 30.70% | 98.01 |
| Solara Active Pharma Sciences Ltd | 10 | 64.52 | 25.83 | 13.93% | 442.12 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 27th July 2021 |
| Issue Closes on:. | 29th July 2021 |
| Issue Price | Rs.695 – 720 |
| Face Value | Rs.2 |
| Retail Category Allocation | 35% |
| Minimum Lot | 20 Shares |
| Minimum Investment | Rs.14,400 |
| Issue Constitutes | 17.15% |
| Issue Size | Rs.1513 cr ($204 million) |
| Market Cap | Rs. 8821 cr ($1.2 billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 1,47,22,222 |
| Equity Shares Offered (OFS) | 63,00,000 |
| Total Equity Shares Offered (Fresh + OFS) | 2,10,22,222 |
| Equity Shares Prior to the issue | 10,78,04,950 |
| Equity Shares after the issue | 12,25,27,172 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 3rd August 2021 |
| Initiation of Refunds | on or Before 4th August 2021 |
| Credit of Equity Shares: | on or Before 5th August 2021 |
| Listing Date: | on or Before 6th August 2021 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 42,42,379 | 0.00 | 1.40 | 36.97 |
| NII | 32,32,770 | 0.86 | 3.5 | 122.54 |
| Retail | 75,43,130 | 5.17 | 9.5 | 14.63 |
| Employee | ———– | —– | —– | —— |
| TOTAL | 1,50,18,279 | 2.78 | 5.90 | 44.17 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 32.61 | 22.07 | 46.71% | 69.82 |
| Check IPO Allotment Status: |
|---|
KfinTech Website: http://kfintech/IPO/Allotment_StatusBSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Glenmark Life Sciences Limited 4th Floor, OIA House, 470, Cardinal Gracious Road, Andheri East, Mumbai – 400099, Maharashtra, India Tel: +91 2189 234456/ +91 2189 234246 E-mail: complianceofficer@glenmarklifesciences.com Website: www.glenmarklifesciences.com |
| IPO Registrar Info: |
|---|
| KFin Technologies Private Limited Selenium Tower-B Plot No-31 and 32, Financial District Nanakramguda, Serilingampally Hyderabad, Rangareddi 500032 Telangana, India Tel: +91 40 6716 2222 E-mail: glenmark.ipo@kfintech.com Website: www.kfintech.com |
