The IPO will see fresh issuance of shares worth Rs 1,250 crore whereas the offer for sale component will see the offloading of 3.48 crore shares. The fresh issue proceeds will be used for funding incremental working capital requirements, capital expenditure requirements and general corporate purposes. The current promoter of the company, Fosun Pharma Industrial, and Gland Celsus Bio Chemicals would be selling 1.93 crore shares and 1 crore shares, respectively. The company will not receive any proceeds from the offer for sale.
At $871 million, Gland Pharma’s IPO would be the largest ever by a pharmaceutical firm in India, way above the $260-million share sale by Eris Lifesciences in 2017, according to data compiled by Bloomberg. It would also be the country’s second biggest this year after SBI Cards & Payment Services’ $1.44-billion offering.
Shanghai Fosun Pharmaceutical (Group) Co acquired a 74% stake in Gland Pharma for about $1.1 billion in 2017. Fosun Pharma, backed by Chinese billionaire Guo Guangchang, had originally sought to buy an 86% stake in the closely-held Indian drugmaker from an investor group, including KKR & Co. However, a stake of such a size must be signed off by the Cabinet Committee on Economic Affairs, which was poised to reject the move, Bloomberg News reported at that time.
The company, which was established in 1978, currently has a business-to-consumer model in India and a business-to-business model globally.
It has a presence in 60 countries. It had initially started as a liquid parenteral business and has over the years expanded to cover different elements of the injectables chain, which consists of contract development, own development, dossier preparation and filing, technology transfer and manufacturing across a range of delivery systems.
Srinivas Sadu, managing director and CEO, Gland Pharma, said, “In the last 15 years, we have many different investors who came to our company and we managed the growth under different investors…”
The shares will have a face value of Rs 1 each. Investors can bid for a minimum of 10 shares, followed by a multiple of 10 shares thereafter.
Citigroup Global Markets India, Haitong Securities India, Kotak Mahindra Capital Company and Nomura Financial Advisory and Securities India are the book running lead managers to the issue.
With inputs from Bloomberg