Gland Pharma Gets Nod To Float IPO

Gland Pharma has received approval from the capital markets regulator, Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO). The Hyderabad-based Gland Pharma will be the first big Indian company, with Chinese parentage, to go public in the country. The IPO is likely to hit the markets soon.

The Gland Pharma public offer is already being estimated as the largest pharma IPO in the country. Eris Lifesciences, which raised Rs 1,741 crore in 2017, has been the biggest pharma primary issue to hit Dalal Street till date. Among other major pharma names, Alkem Labs and Laurus Labs raised Rs 1,350 crore each in 2015 and 2016 respectively.

The IPO comprises fresh issue of shares amounting to up to Rs 1,250 crore and an offer for sale (OFS) of more than 3.4 crore shares, draft papers filed with SEBI show. The OFS includes sale of up to 1.94 crore shares by Fosun Pharma Industrial Pte Ltd, 1 crore shares by Gland Celsus Bio Chemicals Pvt Ltd, 35.73 lakh shares by Empower Discretionary Trust and 18.74 lakh shares by Nilay Discretionary Trust.

Gland Pharma was founded by P V N Raju in the year 1978. The China-based Fosun Pharma holds majority stake of 74 per cent stake in the company.

Gland Pharma manufactures and markets complex injectables. It has seven manufacturing facilities across in India, comprising four finished formulations facilities with a total of 22 production lines and three API facilities.

The company will use the proceeds from the public offer to meet its working capital requirements and for general corporate purposes.

Kotak Mahindra Capital, Citigroup Global Markets, Haitong Securities and Nomura Financial Advisory are the book running lead managers to the public issue.