Gland Pharma IPO: Opens today; Key details you should know before subscribing

Hyderabad-based Gland Pharma's initial public offering (IPO) worth Rs 6,480 crore is scheduled to open today, November 9, 2020. The price band for the offer has been fixed at Rs 1,490-1,500 per share, and the issue will close on Wednesday, November 11, 2020.

The lot size is 10 which means that investors have to apply for multiples of 10 shares and in multiples thereafter. 35 per cent of shares are reserved for the retail segment.

The IPO comprises a fresh issue aggregating up to Rs 1,250 crore (0.8 crore shares) and an offer for sale (OFS) of up to 3.48 crore shares. The proceeds from the fresh issue of shares will be utilised for working capital, capital expenditure and general corporate purposes. The face value of the equity shares is Re 1.

Chinese pharmaceutical giant Shanghai Fosun Pharma-controlled Gland Pharma's IPO is India's largest pharmaceutical IPO ever. Fosun Pharma had acquired a 74 per cent stake in the company in 2017. Post IPO, the promoter shareholding will fall to 58 per cent from 74 per cent.

Other investors of the company include Gland Celsus which owns 12.97 per cent while Empower Trust and Nilay Trust own 5.08 per cent and 2.42 per cent stake, respectively.

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 lakh and 18.45 lakh shares, respectively.

Gland Pharma shares are likely to list on BSE and NSE on November 20, 2020, and the IPO allotment is likely to be finalised around November 17, 2020. Link Intime India Pvt is the registrar of the Gland Pharma IPO and will manage allocation and refund. This could probably be the first big Indian company with a Chinese parent to go for public listing.

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.

Ahead of the opening of the IPO, Gland Pharma has said that it had raised Rs 1,944 crore from anchor investors at the price of Rs 1,500 per equity share by allotting 12,959,089 shares to investors. The anchor investors include Government of Singapore, Nomura, Goldman Sachs, Morgan Stanley, SBI Mutual Fund and Axis Mutual Fund.

About Gland Pharma

Gland Pharma was established by P V N Raju in 1978. It is engaged in the manufacturing and marketing of complex injectables. The company sells its products primarily under a business-to-business (B2B) model in over 60 countries, including the US, Canada, Australia and India, with tie-ups with leading pharmaceutical companies. It had 3,791 people across its facilities in India as on March 31, 2020. It has seven manufacturing facilities in India.