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Gland Pharma: Key things to know about India's largest pharma IPO

Gland Pharma: Key things to know about India's largest pharma IPO

Gland Pharma: Key things to know about India's largest pharma IPO
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By Ankit Gohel  Nov 6, 2020 2:01:51 PM IST (Published)

Fosun Singapore and Shanghai Fosun Pharma-promoted Gland Pharma is set to launch its initial public offer (IPO) worth over Rs 6,400 crore on November 9.

Fosun Singapore and Shanghai Fosun Pharma-promoted Gland Pharma is set to launch its initial public offer (IPO) worth over Rs 6,400 crore on November 9. The company has fixed the price band for its offer at Rs 1,490-1,500 per share.

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At the higher price band, Gland Pharma aims to raise Rs 6,479.54 crore via public issue.
The issue, closing on November 11, will open for a day for anchor investors on November 6.
The IPO consists of a fresh issue of Rs 1,250 crore and an offer for sale of 3,48,63,635 equity shares by the promoter and other selling shareholders.
The offer for sale comprises of 1,93,68,686 shares by promoter Fosun Pharma Industrial Pte, and 1,00,47,435 equity shares by Gland Celsus Bio Chemicals, 35,73,014 shares by Empower Discretionary Trust and 18,74,500 by Nilay Discretionary Trust.
Here are the key things to know about the company and its offer:
1. Gland Pharma is an integrated manufacturer of complex injectable products – it has expanded from manufacturing liquid parenterals to cover other elements of the injectables value chain, including contract development, own development, dossier preparation and filing, technology transfer and manufacturing across a range of delivery systems.
2. The company sells its products to marquee global customers like Sagent Pharmaceuticals, Inc., Fresenius Kabi USA, LLC and Athenex Pharmaceutical Division, LLC in more than 60 countries across the globe including US, Europe, Canada, Australia and India.
3. The company has a strong R&D focus with 267 ANDA filings in the US, of which 215 are approved and the rest are pending approvals, leading to a portfolio of 1,427 product registrations across the world.
4. Gland Pharma has four manufacturing facilities with 22 lines that produce finished formulations, and 3 facilities to manufacture the APIs which in turn feed into the finished formulation products.
5. The company says that none of its facilities has received a warning letter from the USFDA since inception.
6. The company has seen significant revenue growth, along with margin expansion – while revenue from operations has grown at CAGR of 27.38 percent from FY18 to FY20, the EBITDA for the same period has grown at CAGR of 36.90 percent, and the PAT for the same period has grown at CAGR of 55.15 percent.
7. The company aims to continue investing in manufacturing and technology capabilities to expand its product portfolio and increase market share through organic and inorganic means, it said.
8. The funds raised from the IPO will be used to fund capital expenditure, working capital requirements and general corporate purposes, it added.
9. The sale of shares by Fosun will pave the way to bring in demand from foreign institutional investors in the IPO without breaching the sectoral FPI limit of 74 percent.
10. It is the largest IPO to date in the booming Indian pharma sector; 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.
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