China’s Fosun Pharma backed Gland Pharma files IPO papers with SEBI, could raise Rs 5,000 crore

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Updated: Jul 11, 2020 1:33 PM

At a time when pharmaceutical companies have enjoyed a decent run in stock markets, Hyderabad-based Gland Pharma has filed preliminary papers with Sebi for an initial public offering.

Gland Pharma was founded by P V N Raju in 1978.

At a time when pharmaceutical companies have enjoyed a decent run in stock markets, Hyderabad-based Gland Pharma has filed preliminary papers with Sebi for an initial public offering (IPO) that includes a fresh issue of shares worth up to Rs 1,250 crore. Gland Pharma’s fresh issue will also include an offer for sale (OFS) of 3.48 crore shares, news agency PTI reported. Backed by China’s Fosun Pharma, the Hyderabad based Gland Pharma develops, manufactures and markets complex injectables. The issue date, price band, and other details have not yet been finalised.

Gland Pharma has filed a Draft Red Herring Prospectus (DRHP) with Sebi. According to the details available, Gland Pharma’s IPO will comprise fresh shares worth up to Rs 1,250 crore and OFS of up to 3,48,63,635 shares. The OFS will include the sale of up to 1,93,68,686 shares by Fosun Pharma Industrial, 1,00,47,435 shares by Gland Celsus Bio Chemicals, 35,73,014 shares by Empower Discretionary Trust and 18,74,500 shares by Nilay Discretionary Trust. The issue could be worth over Rs 5,000 crore PTI said citing unnamed sources.

The pharma space has outperformed the benchmark indices as the stocks rallied while the broader markets tanked. While Nifty Pharma is up 57% from its March lows, the benchmark Nifty 50 has only managed to jump 42%. The IPO market in India has remained muted for far too long. After the successful IPO of SBI Cards and Payment Services, another IPO of Antony Waste Management was withdrawn citing an uncertain market environment. On Monday, the IPO of Rossari Biotech opens, making it the first to enter the market since March.

Gland Pharma’s shares are proposed to be listed on the NSE and the BSE. Gland Pharma was founded by P V N Raju in 1978. The Chinese firm, Fosun Pharma acquired 74% stake in the company in 2017. Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Pvt Ltd, Haitong Securities India Pvt Ltd, and Nomura Financial Advisory and Securities (India) Pvt Ltd are the book running lead managers to the IPO. Gland Pharma sells its products primarily under a business-to-business model in over 60 countries, including the US, Canada, Australia, and India. It had 3,791 people across its facilities in India as on March 31, 2020. 

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