Nearly Rs 6,500 crore IPO for Gland Pharma has been opened today for subscription and is going to close on Wednesday.
This would be biggest initial public offering by pharmaceutical firm in India.
The company fixed a price of Rs 1,490-1,500 per share for the initial public offer.
Before IPO, Gland Pharma raised Rs 1,944 crores from anchor investors at the price of Rs 1,500 per equity share.
The anchor investors include the Government of Singapore, Nomura, Goldman Sachs, SBI Mutual Fund, and Axis Mutual Fund.
IPO comprises issuance of new shares worth up to Rs 1,250 crores and OFS up to 3.48 crore shares.
The proceeds from the new issue of shares will be utilised for working capital, capital expenditure, and general corporate purposes.
The lot size is 10, which reveals investors have to apply for multiples of 10 shares and multiples after that.
35% of the shares are reserved for the retail segment.
Gland Pharma shares likely to list on BSE and NSE on 20 November, and the IPO allotment expected to be finalised around 17 November.
Link Intime India Pvt the registrar of the Gland Pharma IPO and would manage allocation and refund.
Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Pvt Ltd, and Nomura Financial Advisory and Securities Ltd are the book running lead managers to the IPO.
Hyderabad-based Glan Pharma established in 1978, which had a global footprint across 60 countries which develops, manufactures, and markets complex injectables.
Gland Pharma runs seven manufacturing facilities in India. China’s Fosun Pharma had acquired a 74% stake in the company in 2017. Post-IPO, the promoter shareholding, will fall to 58% from 74%.
Gland Pharma has several factors working for it.
It would be only listed player in the pure formulations space in India.
Secondly, the company follows B2B model with sales in 60 different countries and long-term contracts with several partners, which provides excellent forward-looking pipeline in terms of sales.
Financially, Gland is extremely strong, with CAGR upwards of 25% in its top and bottom line from 2018-20.
Margins of around 39% in FY20 and Q1FY21 margins were even more impressive at 48%,” said Nirali Shah, Senior Research Analyst, Samco Securities.