Gland Pharma IPO: The Rs 6,480 crore initial public offering (IPO) of Gland Pharma – a generic injectables maker having a market share in over 60 countries – opens today and will be available for subscription till Wednesday, November 11. The Hyderabad-based company, backed by China’s Fosun Pharma has a price band fixed Rs 1,490-1,500 per share. Investors can bid in a lot of 10 equity shares and multiples thereof.
At the upper price band, investors will need to give out Rs 15,000 to get a single lot of Gland Pharma. The shares will be listed on both BSE and the National Stock Exchange (NSE). According to Bloomberg, Gland Pharma’s IPO would be the largest ever by a pharmaceutical firm in India. It would also be the country’s second biggest this year after SBI Cards & Payment Services.
Founded initially by P V N Raju in 1978, Gland Pharma’s current promotor Fosun Pharma had acquired a 74 per cent stake in the drug firm in 2017. After this IPO, its promoter shareholding will fall to 58 per cent.
The IPO comprises issuance of fresh shares worth up to Rs 1,250 crore each and an offer of sale (OFS) of up to 3,48,63,635 shares. The OFS consists of sale of up to 1,93,68,686 shares by Fosun Pharma Industrial, 1,00,47,435 shares by Gland Celsus Bio Chemicals, 35,73,014 shares by Empower Discretionary Trust and 18,74,500 shares by Nilay Discretionary Trust.
Kotak Mahindra Capital, Citigroup Global Markets India, Haitong Securities India and Nomura Financial Advisory and Securities (India) are the lead managers of Gland Pharma IPO and Link Intime India is the registrar to the issue.
Gland Pharma develops, manufactures and markets complex injectables. It sells its products primarily under a business-to-business model in over 60 countries, including the US, Canada, Australia and India.
Geojit Financial Services in its research note has recommended “SUBSCRIBE” to the offer.
“At the upper price band of Rs 1,500, GPL is available at a PE of 20x on an annua-lized basis, which appears attractive. With a solid business model, no listed peers and the positive outlook for pharma, we assign a Subscribe rating for the issue,” the brokerage firm said.
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