Glenmark have high chances of allotment but low listing gains...Rolex will get much more listing gains but allotment will be very difficult. Decide accordingly. Also dont keep Rolex for long term.
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July 26, 2021 11:39:16 AM
IPO Guru (1000+ Posts, 1000+ Likes)
Tentative / Confirmed Timeline of Current & upcoming IPOs
• Tatva Chintan Pharma Chem Ltd. (Price Band : Rs. 1073.00 to Rs. 1083.00)
• Issue is Already Closed • Allotment: Today (26th July 2021) • Funds Un Block: 27th July 2021 • Credit of Shares in Demat Account : 28th July 2021 • Listing : 29th July 2021
• Glenmark Life Sciences Ltd. (Price Band: Rs. 695.00 to Rs. 720.00)
• Dates: 27th July to 29th July • Allotment: 3rd August 2021 • Funds Un Block: 4th August 2021 • Credit of Shares in Demat Account : 5th August 2021 • Listing : 6th August 2021
• Dates: 28th July to 30th July • Allotment: 4th August 2021 • Funds Un Block: 5th August 2021 • Credit of Shares in Demat Account : 6th August 2021 • Listing : 9th August 2021
• Windlas Biotech Ltd. (Price Band: To be Announced)
• Dates: 4th August 6th August • Allotment: 11th August 2021 • Funds Un Block: 12th August 2021 • Credit of Shares in Demat Account : 13th August 2021 • Listing : 16th August 2021
@curious: It is already operating as a separate entity since 3 last FYs and Glenmark pharma is the promoter. Still they will hold close to 82% after IPO. So why will Glenmark pharma shares fall, indeed if the subscription levels for the IPO and thereafter if listing are good then the shares will raise.
Only reason its shares fell recently is bcoz of lack of shareholder quota in this IPO for Glenmark pharma shareholders (mentioned in DRHP but removed in RHP).
I think I understand the question. CuriousMe wants to ask this:
Right now, Glenmark Pharma owns 100% stake in Glenmark Life Sciences. Post ipo, the stake will reduce to 82%.
Will this reduction of stake in the subsidiary imply a fall in the valuation of the parent company (because the parent now own a little bit less of the subsidiary)?
P.S: Fall in valuation, if it happens, would translate into fall in share price. Hence the question, "would the ipo of a subsidiary cause a fall in the share price of the parent"?
As per objective of the IPO, the money (most of it) would go to promotors (Glanmark pharma). So fall in share price would not be due to this reason. Fall in share price may be due to low confidence (reason- removing shareholders quota) as rightly said by Chiru and others.