Glenmark's shares will be listed on the Mumbai Stock Exchange and the National Stock Exchange. Glenmark's IPO received overwhelming response from investors and is expected to be listed at a substantial premium to the offer price of Rs 200. According to brokers, the company could be listed in the range of Rs 500-600. The market is keenly awaiting the listing of Glenmark as it is likely to have an impact on Cadila Healthcare Ltd's book building float. Cadila's public issue of 1.48 crore equity shares, is likely to open in mid-February. Glenmark's recent float was a trend setter as it was the first pharmaceutical IPO after a gap of nearly four years and its success has set the stage for other pharma companies to tap the primary market.

In fact, Glenmark is likely to command a good premium on listing as the company has come out with an impressive performance for the third quarter of the current fiscal just before the listing. For the three-month period ended December 31, 1999, net profit zoomed by 190 per cent to Rs 4.9 crore as against Rs 1.69 crore in the same quarter of previous year. The company's equity has now expanded from Rs 7.42 crore to Rs 10.09 crore. Based on the third quarter show, the annualised EPS (adjusted for expanded equity) works out to Rs 16.6. This discounts the offer price of Rs 200 by a multiple of only 12 which leaves ample scope for capital appreciation.

The performance in the third quarter has given a big push to Glenmark's performance in the current year with sales increasing to Rs 30.15 crore from Rs 28.40 crore last year.

For the nine-month period of the fiscal 1999-2000, Glenmark recorded a sales of Rs 92.99 crore and net profit of Rs 11 crore as against a sales of Rs 73.47 crore and net profit of Rs 6.53 crore in the corresponding period of the previous year. For the nine-month period, sales jumped by 26.57 per cent and net profit shot up by 68.45 per cent. This also indicates that Glenmark is likely to surpass its profitability projections for fiscal 2000.

Glenmark Pharmaceuticals has projected a total income of Rs 138.5 crore for fiscal 2000. Of this, Rs 111 crore is expected to be generated from the company's own products and Rs 22 crore is from trading. Sales of pesticides will contribute Rs 3 crore to its total income and Rs 50 lakh from cardiac operations. Total expenses are projected at Rs 122 crore and operating profit is expected to be around Rs 16.5 crore. Other income is projected at Rs 4.5 crore and profit before tax at Rs 20.5 crore. Net profit is projected at Rs 16 crore.

Glenmark tapped the market for setting up a manufacturing facility at Goa and setting up a research and development centre at Mumbai, by providing funds to GM Pharma Ltd, a subsidiary of the company. The company has estimated the total project cost at Rs 53.4 crore. Of the public issue proceeds, Rs 18.7 crore is going towards augmenting working capital requirements of the company. The manufacturing facility is being set up at a total cost of Rs 19.4 crore. The entire fund requirement is being met from public issue proceeds.