Eight months after India’s biggest pharma IPO, the Rs 6,480 crore issue by Gland Pharmaceuticals, Mumbai based drug maker Macleod Pharmaceuticals is also exploring a domestic listing, potentially the second biggest ever in the sector, industry sources with knowledge of the matter told Moneycontrol.
The move comes on the back of a COVID-19 induced focus on healthcare and wellness and frenetic activity in the capital markets in 2021 with as many as 27 IPOs across diverse sectors raising around Rs 41,300 crores as of July 21, according to data from Prime Database.
“Macleod Pharma has initiated preliminary discussions with investment banks to evaluate the launch of an IPO in FY 22,” said one of the individuals cited above.
“These are early days and the pitches for the mandate should happen in August. The firm may look to raise at least Rs 3,000 crores via the listing though no final call has been taken on the size,” a second individual told Moneycontrol.
“They are cash rich and one of the larger unlisted pharma players and are considering an IPO considering the current buoyancy in the market and the favourable valuations for the pharma and healthcare segment,” shared a third individual about the vertically integrated global firm which specializes in the development and manufacture of APIs (active pharmaceutical ingredients) and finished dosage pharmaceutical formulations.
In the last one year, the BSE healthcare index has risen by 56 percent, outperforming the BSE Sensex which has risen by 39 percent during the same phase. As of July 20, 2021, Gland Pharma’s stock price has seen a spectacular surge of more than 153 percent since it listed on the domestic bourses on November 20, 2020.
All the three individuals above spoke to Moneycontrol on the condition of anonymity.
Moneycontrol is awaiting an email response from Macleod Pharma and has sent reminders. This article will be updated as soon as we hear from the firm.
According to industry observers, Macleod Pharma is one of the top 10 pharma companies in the country with consistent sales, strong distribution network, high profitability levels and a presence in fast growing therapeutic areas.
Prior to Gland Pharma, peer Eris Lifesciences made its market debut with a Rs 1,740 crore IPO in June 2017. Laurus Labs listed a year earlier in December 2016 with a Rs 1,330 cr IPO.
21 more IPO’s, which have received Sebi approval or still have a valid approval are expected to hit the markets in the days ahead, in the process raising a combined sum of Rs 28,706 crores according to data from Prime Database.
A CLOSER LOOK AT THE MACLEOD’S PHARMACEUTICALS
Dr Rajendra Agarwal along with his brothers Girdhari Lal Bawri and Bandwari Lal Bawri started Macleods Pharmacuticals in 1986 with an aim to produce anti –TB medicines.
According to the firm’s website, it has expertise across varied therapies such as antituberculars, antimalarials, antiretrovirals, antibacterials, antidiabetics, antihypertensives and antiasthmatics and is known for the largest number of WHO pre-qualified medicines, used in the treatment of HIV/AIDS, Malaria, Tuberculosis (TB) and opportunistic infections.
Macleod’s Pharmaceuticals has 14 manufacturing facilities for finished dosage formulations and 2 manufacturing facilities for APIs, spread across India. The firm has made a foray into regulated markets and has an international presence in 7 countries.
It’s flagship division include almost 120 products and is the company’s largest business unit. With a diverse portfolio; anti-infective, gastrointestinal, blood-related products and anti-hypertensive, the unit reaches out to more than 150,000 doctors in India and caters to almost every speciality, with emphasis on pediatrics, consulting physicians, general practitioners, surgeons, dermatologists and gynaecologists, according to its website.
The firm manufactures close to 25 billion units of finished dosages per year. These include tablets, capsules, liquid orals, powders for oral suspension, pressurised metered dose inhalers (pMDI), single dose dry powder inhalers (DPI), dry powders for injections (antiseptic fill) and a variety of topicals like lotions, creams, ointments and gels.