Hyderabad-based Gland Pharma is set to launch the country's largest initial public offering (IPO) by a pharmaceutical company next week. Till now, the biggest IPO in the pharma sector was from Eris Lifesciences, which raised Rs 1,741 crore in 2017.
Gland Pharma, in which China-based Fosun Pharma holds majority stake, has received the Securities and Exchange Board of India's (SEBI) approval to launch its Rs 6,000 crore IPO. The company will become the first big Indian company with a Chinese parent to go for public listing. The company's promoters are Fosun Singapore and Shanghai Fosun Pharma. Founded by P V N Raju in 1978, Fosun Pharma owns 74 per cent stake in the company.
The IPO comprises of fresh issue of shares worth up to Rs 1,250 crore and an offer for sale (OFS) of a little over 3.4 crore shares. 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, as per the draft paper filed with SEBI.
Shares of Gland Pharma are proposed to be listed on the BSE and the NSE.
Gland Pharma, which manufactures and markets complex injectables, filed draft papers with SEBI in July and obtained the market regulator's observation on October 19 to float an IPO.
The company intends to use fund proceeds from the fresh issue of shares for working capital, capital expenditure and general corporate purposes.
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.