Gland Pharma hopes to raise 6,500cr from IPO

Hyderabad-based Gland Pharma is involved in the manufacturing of sterile generic injectables as well as oncology and ophthalmics products.

It plans to use the IPO’s proceeds to fund its incremental working capital, capex requirements and general corporate purposes
It plans to use the IPO’s proceeds to fund its incremental working capital, capex requirements and general corporate purposes

Gland Pharma plans to raise INR 6,500 crore through an initial public offering (IPO) between November 9 and 11, 2020. This will make it India’s biggest IPO for the sector, beating the record set up Eris Lifesciences’s INR 1,741-crore IPO in 2017. Kotak Mahindra Capital Company, Citigroup, Haitong Securities and Nomura are managing this public offer.

China’s Fosun Pharma Group owns a majority stake in the company. Gland Pharma said that it plans to use the IPO’s proceeds to fund its incremental working capital, capex requirements and general corporate purposes.

Established in 1978, the Hyderabad-based company in involved in the manufacturing of sterile generic injectables as well as oncology and ophthalmics products.  It reported INR 2,772.4 crore revenues in 2019-20, with profits standing at INR 772.8 crore. Majority of this revenue comes from B2B trade, especially in the US. In India, it has B2B as well as B2C business, catering to the hospitals segment as well.

In 2016, Fosun Pharma Group picked up 86% stake for around $1.2 billion in Gland Pharma. Back then, it was the largest overseas acquisition by a Chinese pharmaceutical company. The Shanghai-based company expected this deal to strengthen its global presence and accelerate its speed of internationalization.

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