Glenmark Life Sciences IPO to open for subscription on 27 July

If you have been tracking pharma industry in the past, you would have heard of this popular product called APIs. The active pharma ingredients (APIs) are the specialized raw inputs that go into manufacture of medicines. One of India’s leading players in APIs, Glenmark Life Sciences, is coming out with its much awaited IPO, which opens on 27 July. Glenmark Life Sciences will raise Rs.1,060 crore via fresh issue and will also offer 63 lakh shares of the promoter (Glenmark Pharma) via offer for sale or OFS.

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Understanding the China story in APIs

Over the last 20 years it was generally accepted that any medicine manufactured anywhere in the world has a China component at some point. That was the extent of domination that China built in APIs. Things changed in the last 2 years. Firstly, the Chinese government put severe environmental restrictions on chemicals and bulk drug companies. This impelled many global pharma names to look at India as an alternative source of APIs. Secondly, the pandemic resulted in severe supply chain constraints for API flows from China forcing most pharma companies to diversify their API sources. Lastly, with China’s role in the spread of Coronavirus becoming controversial, many pharma companies globally have consciously opted to reduce their dependence on China for APIs. These 3 factors immensely benefited the Indian API manufacturers.

What exactly is the Glenmark Life Sciences IPO story?

Needless to say, this is the API arm of Glenmark Pharma being hived off, so you have a strong legacy already. Glenmark Life Sciences is already one of the largest API manufacturers in specialized areas like cardiovascular diseases, central nervous system diseases, pain management, gastro-intestinal disorders and anti-infectives. Glenmark Life is also a key player in the Contract Development and Manufacturing Operations (CDMO) space, where again India has a huge global space to occupy. With 4 manufacturing facilities and an annual installed capacity of 726 KL, Glenmark Life Sciences will use the IPO funds for capital expenditure and deepening its relationships and imprint in the export market.

Glenmark Life Sciences IPO opens on 27 July and closes on 29 July. It is scheduled to list on the stock exchanges on 06 August.

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Suggested To Read - To get more details like IPO Issues Size, IPO Open/Close Dates read Glenmark IPO Information Note