IPO street warms up; SEBI approves Glenmark Life Sciences, Utkarsh Small Finance Bank public issues

Capital market regulator SEBI has approved the initial public offerings (IPO) of Glenmark Life Sciences and Utkarsh Small Finance Bank, warming up the IPO street that has seen little action so far this financial year. Collectively, Glenmark Life Sciences and Utkarsh Small Finance Bank are looking to raise more than Rs 2,500 crore through their public issues. Since April, IPO investors have seen only two public offerings, Power Grid InvIT and Macrotech Developers. In the previous financial year, investors were greeted with 30 initial public offerings. 

Utkarsh Small Finance Bank

Issue size: Rs 1,350 crore

The initial public offering of Utkarsh Small Finance Bank will be a mix of fresh issuance of equity shares and an offer for sale by promoters. The fresh issue size, according to the DRHP is Rs 750 crore while the promoters will sell shares worth Rs 600 crore. Utkarsh Small Finance Bank had said that it will utilise the proceeds from the fresh issue to increase its tier 1 capital base to meet future capital requirements. It is among the most profitable SFBs in India and among the leading SFBs in terms of return on assets and had the highest return on equity among SFBs in India in Fiscal 2020, according to Axis Capital. Headquartered in Varanasi, Uttar Pradesh, the SFB  has operations in 18 States and Union Territories with 528 Banking Outlets and 8,729 employees. Over the last three financial years, Utkarsh Small Finance Bank has seen its net profits grow. In fiscal year 2018, the company reported a loss of Rs 77 crore, while in FY2019-2020 the bank had a profit of Rs 186.74 crore. 

Glenmark Life Sciences

Issue size: Rs 1,160+

Glenmark Life Sciences plans to issue fresh equity shares worth Rs 1,160 crore and an offer for sale (OFS) of 73.05 lakh shares of Rs 2 each. According to the shareholding pattern of Glenmark Pharmaceuticals Ltd, the promoter and promoter group collectively hold 13.15 crore shares. Glenmark Life Sciences is a leading developer and manufacturer of select high value, non-commoditized active pharmaceutical ingredients (API) in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management and diabetes. The API business has seen an uptick since the pandemic began as firms across the globe sought to diversify their supply chains and procure APIs from other regions apart from China. Glenmark Life Sciences reported a loss of Rs 43 lakh in the financial year 2017-18. In the previous financial year the company net profit was Rs 313 crore.