Gland Pharma files IPO papers with Sebi, likely to raise Rs 6,000-7,000 crore

Hyderabad-based pharmaceutical company Gland Pharma has filed a draft red herring prospectus with capital market regulator Sebi for its proposed initial public offering on July 10.

Moneycontrol had first reported this on July 10.

The IPO comprises a fresh issue of up to Rs 1,250 crore and an offer for sale of up to 3,48,63,635 equity shares by promoters.

The offer for sale consists of 1,93,68,686 equity shares by Fosun Pharma Industrial Pte Ltd, 1,00,47,435 equity shares by Gland Celsus Bio Chemicals, up to 35,73,014 equity shares by Empower Discretionary Trust, and 18,74,500 equity shares by Nilay Discretionary Trust.

If the issue gets through successfully then it could be the first Indian company with Chinese parent to list on bourses.

Fosun Singapore and Shanghai Fosun Pharma are the promoters of company. Fosun Singapore holds 74 percent stake in the company pre-offer, while Shanghai Fosun Pharma holds 100 percent of the share capital of Fosun Industrial Co which holds 100 percent of the share capital of Fosun Singapore.

Gland Celsus holds 12.97 percent stake in the Gland, Empower Trust 5.08 percent and Nilay Trust 2.42 percent in the pre-offer.

Gland Pharma develops, manufactures and markets complex injectables across its seven manufacturing facilities, four at Hyderabad and three at Visakhapatnam, in India.

The company reported a 71 percent growth in FY20 profit at Rs 772.85 crore and 28.8 percent rise in revenue at Rs 2,633.24 crore compared to previous year.

Gland Pharma has established a portfolio of products across various therapeutic segments such as anti-diabetic, anti-infectives, anti-malaria, anti-neoplastics, blood-related, cardiac, gastro-intestinal and hormones through a combination of delivery systems including liquid vials, lyophilized vials, pre-filled syringes, ampoules, bags and drops.

The book running lead managers to the offer are Kotak Mahindra Capital Company, Citigroup Global Markets India, Haitong Securities India and Nomura Financial Advisory and Securities (India).

Equity shares are proposed to be listed on BSE and NSE.