Chinese-backed drug firm Gland Pharma has received a crucial nod from market regulator SEBI to launch an initial public offering (IPO) worth Rs 6,000 crore. This would mark the first major IPO by an Indian company that has a Chinese parent.
The pure-play generic injectable pharmaceutical products company had filed its draft red herring prospectus with Sebi for the proposed IPO back in July 2020.
As per reports, the proposed issue will be a mixture of primary and secondary issue of equity shares with both Fosun group and the founders of Gland Pharma. The two biggest shareholders in Gland Pharma hold 74% equity stake indirectly, amounting around $1.09 billion.
Most proceeds from the IPO will be used for capex and working capital for its Indian operations, according to the DHRP.
The offer is likely to comprise a fresh issue aggregating up to Rs 1,250 crore and an offer for sale of up to Rs 4,750 crore.
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 merchant bankers working on the issue.
Back in 2017, the Hong Kong-listed Fosun had acquired around 74% in the pharma company for around $1.09 billion.
Established in Hyderabad, the company was founded in 1978 by PVN Raju. Dr Ravi Penmetsa, who held the position of vice-chairman and managing director of the firm since 1999. He has taken an advisory role in 2019 to support the management, while the firm is currently led by MD and CEO Srinivas Sadu.
Gland Pharma has seven manufacturing facilities comprising four finished formulations facilities with a total of 22 production lines and three API facilities. The company's manufacturing facilities have been approved by the US Food and Drug Administration (USFDA), Medicines and Healthcare Products Regulatory Agency (UK MHRA) and other regulators.