Gland Pharma Ltd is ready to change into the primary Chinese-controlled firm to record on Indian inventory exchanges.
The firm, which is majority-owned by China’s Fosun Pharma, has acquired the Securities and Exchange Board of India’s (Sebi) approval to go forward with its proposed ₹6,000 crore IPO, two folks conscious of the event mentioned.
The firm, which develops, manufactures and markets advanced injectables, had filed the draft share sale doc for its IPO with Sebi in July.
Shanghai-based Fosun acquired a 74% stake within the firm in 2017.
The IPO comes at a time when bilateral relations between the 2 neighbours are at all-time low following lethal border clashes in June. As a fallout, India has banned a number of Chinese apps and restricted the circulation of Chinese capital and items into India.
All investments from China and Hong Kong are required to mandatorily bear authorities scrutiny and approval. This has severely slowed down the circulation of Chinese capital into Indian corporations, particularly tech startups.
To make certain, Gland Pharma’s IPO plans seem unlikely to be affected by the strain.
In truth, given the tailwinds that Indian pharma has been witnessing since covid, the Gland Pharma deal too is seeing a robust urge for food from buyers, mentioned one of many folks cited above, talking on the situation of anonymity.
“There is very strong demand for the deal. It will be launched early next month. The company is likely to be listed on the exchange before Diwali,” he mentioned.
Gland Pharma plans to lift ₹1,250 crore via the IPO.
Existing promoters plan to promote round 34 million shares, which could possibly be price round ₹4,750 crore. Fosun Pharma will promote a 12.5% stake.
The firm will use the proceeds for capex and dealing capital necessities.
Gland Pharma has a longtime portfolio of injectable merchandise throughout therapeutic areas and supply techniques.
For the fiscal to March, the corporate reported a income of ₹2,772.Four crore, as towards ₹2,129.7 crore within the earlier 12 months. In 2019-20, it reported a revenue of ₹772.eight crore towards a revenue of ₹451.eight crore within the earlier fiscal.
Kotak Mahindra Capital Co. Ltd, Citigroup Global Markets India Pvt. Ltd, Haitong Securities India Pvt. Ltd and Nomura Financial Advisory and Securities (India) Pvt. Ltd are advising the corporate on the IPO.
An electronic mail despatched to Gland Pharma didn’t elicit a response.
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