Hyderabad-based Gland Pharma has filed preliminary papers with markets regulator Sebi for an initial public offer that includes fresh issue of shares worth up to Rs 1,250 crore.
Apart from the fresh issue, there is an Offer for Sale (OFS) of a little over 3.4 crore shares as part of the initial public offering (IPO).
The company, backed by China's Fosun Pharma, has filed a Draft Red Herring Prospectus (DRHP) with Sebi. It develops, manufactures and markets complex injectables.
The issue comprises fresh shares worth up to Rs 1,250 crore and OFS of up to 3,48,63,635 shares. The latter includes sale of up to 1,93,68,686 shares by Fosun Pharma Industrial Pte Ltd, 1,00,47,435 shares by Gland Celsus Bio Chemicals Pvt Ltd, 35,73,014 shares by Empower Discretionary Trust and 18,74,500 shares by Nilay Discretionary Trust, as per the DRHP.
Investment banking sources said the IPO would be worth over Rs 5,000 crore.
This could probably be the first big Indian company with a Chinese parent to go for public listing. The company's promoters are Fosun Singapore and Shanghai Fosun Pharma.
The proceeds from the fresh issue of shares will be utilised for working capital, capital expenditure and general corporate purposes, according to the DRHP.
Gland Pharma was founded by P V N Raju in 1978 and Fosun Pharma acquired 74 percent stake in the company in 2017. Shares of the company are proposed to be listed on the BSE and the NSE.
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 book running lead managers to the IPO.
The company sells its products primarily under a business-to-business model in over 60 countries, including the US, Canada, Australia and India. It had 3,791 people across its facilities in India as on March 31, 2020.