In the midst of the COVID-19 pandemic's blazing second wave, and many dreading the third wave, the healthcare industry is in the spotlight for the second year in a row, with many pharma and life sciences businesses planning IPOs in the coming months, according to investment bankers. They expect to raise around Rs 7,000 crore in primary share offerings, according to investment bankers. According to PTI, while the IPO market was the busiest in FY'21, with the best ever performance after the pandemic panic subsided, pharma companies were one of the greatest performers throughout the year as the Sensex and Nifty achieved new highs.
Glenmark Lifesciences IPO
Glenmark Life Sciences Ltd, a wholly-owned subsidiary of Glenmark Pharmaceuticals Ltd, has filed a draft red herring prospectus with SEBI for an IPO for Rs 1,160 crore.
The IPO consists of a fresh issue of up to Rs 1,160 crore and a sale of up to 73.05 lakh equity shares of Glenmark Life Sciences Ltd at a price of Rs 2 apiece by Glenmark Pharmaceuticals Ltd. Goldman Sachs, Kotak Mahindra Capital, BoFa Securities, DAM Capital, BoB Caps and SBI Capital Markets are the lead managers to the issue. The API business is critical to the organisation, with API operations accounting for 84.16 percent of total revenue from operations in fiscal 2020 and 89.87 percent in fiscal 2019.
Supriya Lifesciences IPO
Supriya Lifescience Ltd, a bulk medicines company, has filed a draft red herring prospectus (DHRP) with the Securities and Exchange Board of India (Sebi) to raise Rs 1,200 crore through an IPO (IPO). The IPO comprises of a fresh issue of 200 crore and an offer for sale by promoter Satish Waman Wagh for up to 1,000 crore. The issue's lead managers are ICICI Securities and Axis Capital. The firm plans to expand its existing manufacturing facilities in Lote, Maharashtra, as well as continuing to invest in existing manufacturing technology to support the production of its active pharmaceutical ingredient portfolio (APIs).
Supriya Lifescience is a leading manufacturer and supplier of APIs in India, with a strong focus on R&D.
Windlass Biotech IPO
Windlas Biotech Ltd has filed preliminary papers with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) that includes a fresh Rs 165 crore issue. The IPO consists of a 165-crore new issuance and a 5.14-million-share offer for sale by the company's current promoters and shareholders. Vimla Windlass is selling 1.14 million shares and Tano India Pvt Equity Fund II is selling 4.01 million shares as part of an offer for sale. Vimla Windlass currently owns 7.8 percent of the company, while Tano India Pvt Ltd owns 22 percent. SBI Capital Markets, DAM Capital Advisors and IIFL Securities Ltd are the book running managers to the issue. The company would use a total of Rs. 47.56 crore to meet additional working capital requirements and Rs. 20 crore to settle certain debt. Its total outstanding borrowings were Rs32.16 crore as of March 2021.
The IPO will include new shares as well as an offer for sale from the business's promoter Satish Mehta and investor Bain Capital, who bought a 13% stake in the company in 2014. While the corporation is aiming to sell up to a 20% share, it is unclear whether Bain will sell the entire company.
Veeda Clinical Research
Veeda Clinical Research, which is backed by CX Partners, is planning an IPO of Rs 500 crore, with JM Financial and SBI Caps as advisors. The paperwork have yet to be filed with Sebi.