Gland Pharma ₹1,250 crore IPO to open next week — sets price band at ₹1,490-1,500

• The IPO of Hyderabad-based Gland Pharma will open on November 9 and close on November 11.
• The company plans to raise up to ₹1,250 crore through issue of fresh equity shares up to 34.8 lakh.
• The lender has fixed a price band of ₹1490-1500 per share.
• The minimum bid for the investors is set at 10 equity shares and in multiples of 10 shares thereafter.

The IPO of Hyderabad-based Gland Pharma, which is promoted by China’s Fosun Pharma, will open next week. The lender has fixed a price band of ₹1490-1500 per share. The IPO opens on November 9 and closes on November 11.

The company plans to raise up to ₹1,250 crore through issuance of fresh equity shares up to 34.8 lakh. The offer period for anchor investors is one day prior to the bid opening date, i.e. November 6.

The company said the proceeds from the issue would be utilised for funding incremental working capital requirements, capital expenditure requirements and general corporate purposes. And, it is worthy to note while the company will not receive any money from the offer for sale portion.

The minimum bid for the investors is set at 10 equity shares and in multiples of 10 shares thereafter.

The Chinese promoter

China’s Fosun Pharma promotes Gland Pharma, and this will be the first domestic IPO of an Indian company with a Chinese parent.

Gland Pharma, which develops, manufactures and markets complex injectables, was founded by PVN Raju in 1978 and Fosun Pharma acquired 74% stake in the company in 2017.

Gland Pharma


Gland Pharma IPO details

In the offering, no more than 50% of the stake will be given in qualified institutional placements (QIP), while at least 35% will be available for retail investors and the rest will be available for non-institutional bidders. The offer for sale comprises 193,68,686 shares by promoter Fosun Pharma Industrial, 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.

Kotak Mahindra Capital Co. Ltd, Citigroup Global Markets India Pvt. Ltd, Haitong Securities India Pvt. Ltd and Nomura Financial Advisory and Securities (India) Pvt. Ltd are the lead book-running managers for the IPO.

This IPO comes at a time when its other peers have seen a subdued listing— from Angel Broking to UTI AMC and Equitas Small Financial Bank all have listed at a discount over their issue price band.

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