Hyderabad-based Gland Pharma Ltd, backed by Fosun Pharma, has set the price band for its IPO (initial public offering) at Rs 1,490-1,500 per share. The public issue will be open for three days, from November 9 to November 11, 2020.
India's largest IPO in the pharmaceutical sector with Chinese parentage comprises a fresh issue of shares aggregating up to Rs 1,250 crore and offer for sale of up to 3.49 crore 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.
The pharma company will hold a press conference today to give additional details on the IPO, which will make it the biggest IPO from the Indian pharma sector. The company had filed its draft papers in July month and received Sebi's go-ahead last week.
Not more than 50% of the total stake will be given in qualified institutional placements, while at least 35% will be available for retail investors and the remaining will be available for subscription by non-institutional bidders. Applicants can bid for a minimum one lot of 10 equity shares and in multiples of 10 shares thereafter, up to 13 lots.
Established in Hyderabad in 1978, Gland Pharma is a prominent generic injectables-focused company and 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. In 2019-20, it reported a profit of Rs 772.8 crore against a profit of Rs 451.8 crore in the previous fiscal.
The company plans to utilise the proceeds from the public offer to meet its working capital requirements and for general corporate purposes. It will not receive any money from the offer for sale portion.
Kotak Mahindra Capital, Citigroup, Haitong Securities and Nomura Financial Advisory and Securities are the book running lead managers to the IPO.