India's largest pharma IPO set to hit market

Mumbai: Hyderabad-based Gland Pharma’s Rs 6,000 crore initial public offer (IPO) is set to hit the market next week, according to bankers.This will be the largest IPO by a pharmaceutical company in India. The biggest IPO till date in the sector was from Eris Lifesciences, which raised Rs 1,741 crore in 2017. Alkem Laboratories and Laurus Labs raised Rs 1,350 crore each in 2015 and 2016, respectively. So far, only 14 Indian companies have raised an amount greater than Rs 6,000 crore through an IPO.The IPO by Gland Pharma, backed by Fosun Pharma, comprises a fresh issue aggregating up to Rs 1,250 crore and an offer for sale of up to 3.49 crore shares. While Fosun is offering to sell 1.9 crore shares, Gland Celsus Bio Chemicals is planning to sell one crore shares. The other two shareholders — Empower Discretionary Trust and Nilay Discretionary Trust — are offloading 35.73 lakh and 18.45 lakh shares, respectively.The company, which filed its draft papers in July, received approval from the capital markets regulator Sebi last week.Fosun Singapore holds 74 per cent stake in the company. Other investors of the company include Gland Celsus which owns 12.97 per cent while Empower Trust and Nilay Trust own 5.08 per cent and 2.42 per cent stake, respectively.Kotak Mahindra Capital Company, Citigroup, Haitong Securities and Nomura Financial Advisory and Securities are the book running lead managers to the IPO.The company posted revenue of Rs 2,772 crore for the year ended March 2020 as against Rs 2,129.7 crore in the previous year. In 2019-20, it reported a profit of Rs 772.8 crore against Rs 451.8 crore in the previous fiscal.

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