Mumbai-based drug-maker Glenmark Pharmaceuticals is readying for an initial public offering of its wholly owned subsidiary Glenmark Life Sciences (GLS), with the firm aiming to raise about ₹1,500-2,000 crore in this financial year.

Glenmark Life Sciences is expected to file a draft red herring prospectus (DRHP) with the markets regulator “soon”, even as it has roped-in Goldman Sachs, Kotak Mahindra Capital, BoFa Securities and DAM Capital as advisers to the issue. GLS, the Active Pharmaceutical Ingredient (API) arm of Glenmark Pharmaceuticals, intends to use the proceeds to reduce debt, sources close to the development told BusinessLine .

“The IPO size is yet to be finalised, even though the intention is to raise up to ₹2,000 crore. The size would be finalised only at a later stage,” one of the sources said. When contacted, a company spokesperson declined to comment.

The firm, which is primarily into manufacturing and marketing of APIs, has a product portfolio comprising more than 130 APIs and a catalogue of over 270 inventions, which have different degrees of patent protection. The firm, which supplies APIs to more than 700 customers across 65 countries, also develops 10-12 new products every year.

Glenmark Life Sciences has manufacturing operations at Ankleshwar and Dahej in Gujarat for APIs and Mohol and Kurkumbh in Maharashtra for APIs and intermediates. The firm has a production capacity of about 450 MT per annum. GLS’ EBITDA margin for the first nine months of FY21 stood at 29.78 per cent.