Glenmark Life Sciences (GLS), a subsidiary of Glenmark Pharmaceuticals, has filed for initial public offer (IPO) papers with the Securities and Exchange Board of India (SEBI) to start the process for its public listing. GLS is involved in the rapidly-growing active pharmaceutical ingredients (API) sector. 

GLS plans to raise at least Rs 1,160 crore via fresh issues and is selling 7.3 lakh equity shares of Rs 2 each. Depending on the final valuation, the price of those equity shares could be much higher than the initial offer. 

According to the Draft Red Herring Prospectus (DRHP), legal firms Trilegal and S&R Associates will be functioning as its legal advisers. Investment bankers from Kotak Mahindra Capital, BofA Securities, Goldman Sachs, DAM Capital, SBI Capital and BoB Capital will be working with GLS and Glenmark Pharmaceuticals on the IPO as well. 

Glenmark Pharmaceuticals intends to leverage the increasing value of GLS in a segment that is showing steady growth, something that investors who want to stick to just the API segment will be eager to capitalise on. The proceeds from the IPO will also help in reducing the increasing debt on Glenmark Pharmaceuticals, which stood at Rs 3,600 crore, according to the latest reports. 

GLS saw an increase of nearly 23 per cent in revenue in the financial quarter that ended in December 2020. Glenmark Pharmaceuticals had intended to sell off a minority stake in GLS to private equity holders just two years ago. The company is now looking for opportunities to grow by filing 10 to 12 drug master files in the last quarter of the financial year.