Glenmark Life Sciences listing: No bumper gains; shares debut at 4% premium to IPO price

Glenmark Life Sciences shares listed at a weak premium at the moment.
(Picture: REUTERS)

Glenmark Life Sciences shares made a weak itemizing on the inventory exchanges at the moment, marred by the muted market momentum. Glenmark Life Sciences’ shares started buying and selling at Rs 751 per share, up 4.32% from the IPO worth of Rs 720 per share. The IPO of Glenmark Life Sciences had acquired a robust response from buyers earlier final week. A subsidiary of the already listed Glenmark Pharmaceuticals, Glenmark Life Sciences develops and manufactures excessive worth, non-commoditized APIs with a portfolio of 120 merchandise. On itemizing the corporate was commanding a market capitalization of Rs 9,203 crore. 

Verify reside worth: Glenmark Life Sciences

After the preliminary jiffy of commerce, Glenmark Life Sciences share worth extending its opening positive aspects to leap 9% from the IPO worth to commerce at Rs 783.75 per share.

Glenmark Life Sciences IPO was subscribed 44.17 instances by buyers. Retail buyers had bid for 14.63 instances their portion whereas Non-Institutional Traders (NII) had bid for a whopping 122.54 instances their quota. Certified Institutional Consumers (QIB) subscriptions stood at 36.97 instances. QIBs had half of the difficulty reserved for them whereas 35% was saved for retail buyers and 15% for NIIs. Glenmark Life Sciences’ IPO was a mixture of a contemporary subject of fairness shares and a suggestion on the market (OFS).

“Contemplating the FY-21 adjusted EPS of Rs 28.69 on a post-issue foundation, the higher worth band implies a P/E of 25.09 with a market cap of Rs 88,220 mn, whereas its friends specifically Divi’s Laboratories, Laurus Labs and Shilpa Medicare are buying and selling at a P/E of 64.0, 36.1 and 36.5 respectively,” stated analysts at Marwadi Monetary Companies. The brokerage agency had a ‘Subscribe’ score to the IPO.

Analysts at Hem Securities had advisable buyers to subscribe to the IPO for each itemizing in addition to long-term positive aspects. “Firm is bringing the difficulty at worth band of Rs 695-720 per share at p/e a number of of 25 on submit subject FY21 eps. The corporate having management in choose excessive worth, non-commoditized APIs in power therapeutic areas enjoys sturdy relationships with main international generic firms,” Hem Securities stated in a observe.