The Gland Pharma IPO, India’s largest IPO in the pharmaceutical sector, comprises a fresh issue aggregating up to Rs 1,250 crore and an offer for sale of up to 3.49 crore shares. While China’s Fosun Pharma Industrial Pte is offering to sell 1.9 crore equity shares, Gland Celsus Bio Chemicals is planning to sell 1 crore shares. The other two shareholders Empower Discretionary Trust and Nilay Discretionary Trust are offloading 35.73 lakhs and 18.45 lakhs shares, respectively.
The company plans to utilise the fresh issue proceeds for funding incremental working capital requirements, capital expenditure requirements and for general corporate purposes.
The previous largest IPO in pharma space was Rs 1,741 crore raised by Eris Lifesciences in 2017 while Alkem Laboratories and Laurus Labs raised about Rs 1,350 crore each in 2015 and 2016, respectively. So far in India, only 14 companies have raised over Rs 6,000 crore through IPOs.
The company which filed its draft papers in July received capital markets regulator Sebi’s go-ahead last week.
Fosun Singapore which is a subsidiary of Shanghai Fosun Pharma holds 74% stake in the company. Other investors of the company include Gland Celsus which owns 12.97% while Empower Trust and Nilay Trust own 5.08% and 2.42% stake respectively.
Kotak Mahindra Capital Company, Citigroup, Haitong Securities and Nomura Financial Advisory and Securities are the book running lead managers to the IPO.
The Hyderabad based pharma company has reported Rs 2,772 crore revenue for the year ended March 2020 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.
So far in 2020, 11 companies have raised Rs 18,484 crore through IPOs of which SBI Cards and Payment Services alone has raised Rs 10,350 crore.