Gland Pharma raises Rs 1,944 crore from anchor investors ahead of IPO

The IPO Committee of the board of directors of the company vide resolution on November 6, 2020 and the selling shareholders in consultation with the book running lead managers to the IPO have "finalised allocation of 1,29,59,089 equity shares in aggregate, to anchor investors at the anchor investor allocation price of Rs 1,500 per equity share", the company informed the BSE.

At this price, the company garnered Rs 1,944 crore.

The anchor investors include Government of Singapore, Nomura, Goldman Sachs, Morgan Stanley, SBI Mutual Fund, Axis Mutual Fund, SBI Life Insurance Company, Fidelity, ICICI Prudential Mutual Fund, HSBC Global Investment Funds, Small Cap World Fund and The Scottish Oriental Smaller Companies Trust PLC among others.

The Hyderabad-based company, backed by China''s Fosun Pharma, develops, manufactures and markets complex injectables.

The company has fixed a price of Rs 1,490-1,500 per share for the initial public offer (IPO), which will be open for public subscription during November 9-11.

The IPO comprises issuance of fresh shares worth up to Rs 1,250 crore 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 Pte Ltd, 1,00,47,435 shares by Gland Celsus Bio Chemicals Pvt Ltd, 35,73,014 shares by Empower Discretionary Trust and 18,74,500 shares by Nilay Discretionary Trust.

The IPO will fetch Rs 6,479.5 crore at the upper end of the price band.

This could probably be the first big Indian company with a Chinese parent to go for public listing.

The company''s promoters are Fosun Singapore and Shanghai Fosun Pharma.

The proceeds from the fresh issue of shares will be utilised for working capital, capital expenditure and general corporate purposes, as per the draft papers.

Gland Pharma was founded by P V N Raju in 1978 and Fosun Pharma acquired 74 per cent stake in the company in 2017.

Shares of the company are proposed to be listed on the BSE and the NSE.

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.

The company sells its products primarily under a business-to-business model in over 60 countries, including the US, Canada, Australia and India. It had 3,791 people across its facilities in India as on March 31, 2020.

Last month, the company had obtained Sebi''s go ahead to float its IPO.

Read also: Gland Pharma launches Rs 6500 crore largest pharma IPO in India, offer opens Nov 9