Gland Pharma IPO To Open On November 9, Price Fixed At Rs 1,490-1,500 A Share

Gland Pharma IPO (initial public offering) will open for bidding on November 9. The public issue will be open for three days, from November 9 to November 11. The Hyderabad-based company has fixed the public issue in the price band at Rs 1,490-1,500 per share.

Gland Pharma will be the first big Indian company, with Chinese parentage, to go public in the country.

The Gland Pharma public offer will be the largest pharma IPO in the country. It aims to raise Rs 6,479.54 crore through the public issue, at the higher end of the price band. Eris Lifesciences, which raised Rs 1,741 crore in 2017, was the biggest pharma primary issue to hit Dalal Street thus far. Other prominent pharma companies i.e. Alkem Labs and Laurus Labs raised Rs 1,350 crore each in 2015 and 2016 respectively.

The IPO comprises fresh issue of shares amounting to up to Rs 1,250 crore and an offer for sale (OFS) of more than 3.4 crore shares. The 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.

Applicants can bid for a minimum one lot of 10 equity shares and in multiples of 10 shares thereafter, up to 13 lots.

The proceeds from the public offer will be used to meet the company's working capital requirements and for general corporate purposes.

Gland Pharma was founded by P V N Raju in the year 1978. The China-based Fosun Pharma holds majority stake of 74 per cent stake in the company.

Gland Pharma manufactures and markets complex injectables. It has seven manufacturing facilities across India, comprising four finished formulations facilities with a total of 22 production lines and three API facilities. Gland Pharma sells products in more than 60 countries, including the United States, Europe, Canada, Australia and India.

The primary market offering by Gland Pharma will be the 13th IPO in 2020. SBI Card, Rossari Biotech, Mindspace Business Parks REIT, Route Mobile, Happiest Minds Technologies, Chemcon Speciality Chemicals, Computer Age Management Services, Angel Broking, UTI Asset Management Company and Mazagon Dock Shipbuilders are among the major companies to list during the year.

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