Hyderabad-based Gland Pharma Ltd (GLP), backed by Chinese firm Fosun Pharma, will launch its initial public offering (IPO) from November 9-11 (Monday-Wednesday). The Rs 6,500 crore IPO has price band of Rs 1,490-1,500 per share. Ahead of IPO, Gland Pharma on Satuday raised Rs 1,944 crore from anchor investors at the price of Rs 1,500 per equity share.
The anchor investors include the Government of Singapore, Nomura, Goldman Sachs, Morgan Stanley, SBI Mutual Fund, Axis Mutual Fund, SBI Life Insurance Co., Fidelity, ICICI Prudential Mutual Fund, HSBC Global Investment Funds, Small Cap World Fund and The Scottish Oriental Smaller Companies Trust PLC among others.
Here's a full detail of Gland Pharma IPO:
Fresh issue: The IPO comprises the issuance of fresh shares worth up to Rs 1,250 crore.
Offer for sale: The offer for sale is up to 34,863,635 equity shares by existing shareholders. Gland Pharma 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.
IPO Price: The price band for Gland Pharma IPO has been fixed at Rs 1,490-1,500 per share.
Book managers: 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.
Lot size: Investors can subscribe to the IPO by betting for a lot of 10 shares. Retail investors can bid for a maximum of 13 lots.
Basis of allotment finalisation date: The finalisation of the basis of allotment is likely by November 17, the initialisation of refunds is likely by November 18, and credit of shares in the demat account is likely by November 19.
Gland Pharma IPO listing is most likely to happen on November 20. The IPO will fetch Rs 6,479.5 crore at the upper end of the price band. This could probably be the first big Indian company with a Chinese parent to go for public listing.
About Gland Pharma:
The company was founded by PVN Raju in 1978. The company's promoters are Fosun Singapore and Shanghai Fosun Pharma. Fosun Pharma owns 74 per cent stake in the company. Gland Pharma manufactures and markets complex injectables. It is one of the fastest-growing in the segment by revenue in the US from 2014 to 2019. The company reported a revenue of Rs 2,772.4 crore in the March quarter of 2019-20, as against Rs 2,129.7 crore in the previous year.
GLP sells its products through a business-to-business (B2B) model in more than 60 countries across the globe (as of June 30, 2020), including US, Europe, Canada, Australia, etc. Gland Pharma has seven manufacturing facilities in India, comprising four finished formulations facilities with a total of 22 production lines and three API facilities.
The company plans to utilise the proceeds from the public offer to meet its working capital requirements and for general corporate purposes.
(Edited by: Mansi Jaswal)