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Gland Pharma IPO: Study Before Subscribing

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Hyderabad based Gland Pharma IPO opens for subscription on Monday, November 9, 2020. An issue of around Rs. 6000 cr will now be India’s biggest pharma IPO to enter Indian stock markets. Eris Lifesciences IPO was the biggest IPO from the Indian pharma sector in 2017 that raised Rs. 1,741 cr. Here are all the details of the Gland Pharma issue to study before subscribing.

About Gland Pharma Ltd

Gland Pharma Ltd is incorporated on March 20, 1978, promoted by Fosun Singapore and Shanghai Fosun Pharma.

The company has an extensive track record in complex injectables development, manufacturing, marketing, and close understanding of the related sophisticated scientific, technical, and regulatory processes.

As of June 30, 2020, Gland Pharma, along with its partners, had 267 ANDA filings in the United States, of which 215 were approved, and 52 were pending approval.

Gland Pharma has seven manufacturing facilities in India, comprising four finished formulations facilities with a total of 22 production lines and 3 API facilities. As of June 30, 2020, they had a manufacturing capacity for finished formulations of approximately 75.5 crore units p.a.

Gland Pharma has a successful track record of operating a B2B model with leading pharmaceutical companies such as Sagent Pharmaceuticals Inc. and Apotex Inc. as well as Fresenius Kabi USA LLC and Athenex Pharmaceutical Division LLC in the United States and the Rest of the world.

Gland Pharma IPO Issue Details

OPENS ON: Nov 9, 2020
CLOSES ON: Nov 11, 2020
Price band: Rs. 1490 – Rs. 1500
Lot size: 10 shares
1 lot costing: Rs. 15,000
Listing on: NSE, BSE
Issue size: Rs. 6,479.55 cr (Fresh issue: Rs. 1250 cr + Offer For Sale: Rs. 5229.55 cr)
Offer for sale: Consists of the sale of up to 1.93 cr shares by Fosun Pharma Industrial Pte Ltd, 1 cr shares by Gland Celsus Bio Chemicals Pvt Ltd, 35.73 Lk shares by Empower Discretionary Trust, and 18.74 Lk shares by Nilay Discretionary Trust.
Shareholding: Promoter holding will stand at 58.36% post-issue

Will list on the exchange on Nov 20, 2020.

Use of funds:
– To finance the incremental working capital requirements of our Company
– To meet funding requirements for capital expenditure requirements
– To meet the general corporate purposes

Interesting facts about Gland Pharma IPO:

  • Gland Pharma will be the first company to be listed on the Indian exchanges with a Chinese promoter. Fosun Singapore and Shanghai Fosun Pharma are the company’s promoters. In 2017, Fosun Pharma acquired a 74% stake in Gland Pharma.
  • From 2014 to 2019, the company is one of the fastest-growing generic injectables-focused companies by revenue in the US.
  • Company sells products primarily under a business-to-business (“B2B”) model in over 60 countries as of June 30, 2020, including the United States, Europe, Canada, Australia, India, and the Rest of the world.
  • As of June 30, 2020, we along with our partners had 267 ANDA filings in the United States, of which 215 were approved and 52 were pending approval.
  • In FY20, contribution to revenue from the United States stood at 66.74% and India at 17.74%.
  • Total revenue from operations has grown at a CAGR of 27.38% from Fiscals 2018 to 2020. EBITDA has grown at a CAGR of 36.90% from Fiscals 2018 to 2020. Restated profit for the year has grown at a CAGR of 55.15% from Fiscals 2018 to 2020.
  • Company has a high client concentration as the top 5 customers contribute 49.92%, 47.86%, 48.86% as on June,20, FY2020 and FY19 respectively.

Marwadi Shares & Finance Ltd have a ‘SUBSCRIBE’ recommendation for Gland Pharma IPO. To apply for Gland Pharma IPO, one can do it from our website Marwadi Shares & Finance Ltd.

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