Gland Pharma IPO
Gland Pharma gets SEBI approval for ₹6,479.55 crore IPO with fresh issue of ₹1,250 crore and offer for sale of ₹5,229.55 crore. The IPO opens on Nov 9, 2020 and close on Nov 11, 2020.
Company Overview
Mr.PVN Raju founded Hyderabad based Gland Pharma in 1978. Fosun Pharma Singapore bought a 74% stake for USD 1 Billion in 2017. Fosun Pharma Singapore is 100% owned by Fosun Industrial Co. Ltd., and Fosun Industrial Co. Ltd. is 100% owned by Shanghai Fosun Pharma.
Gland Pharma is the fastest growing generic injectables focused companies by revenue in the USA from 2014 to 2019 (Source: IQVIA Report)
Gland Pharma develops, manufactures, and markets complex injectables across its seven manufacturing facilities with a capacity of approximately 750 million units. These include four facilities with 22 production lines for finished formulations at Hyderabad and three Active Pharmaceutical Ingredient (API) facilities at Vishakhapatnam. Its products are mainly used in critical care segments and hence are highly quality-driven.
It operates on the B2B model and sells its products in over 60 countries across 5 continents, including the United States, Europe, Canada, Australia, India, and other markets.
Company’s Products
Its key molecules include Heparin Sodium Injection, Enoxaparin Sodium Injection, Rocuronium Bromide Injection, and Daptomycin Injection. They are present in a vast range of therapeutic categories that include Anti-Infectives, Anesthetics, Anticoagulants, and Antidots, Anti-Malarial, Cardiology, and more-to hormones and Related Drugs, Fertility Supplements and GnRH Agonists and Antagonists.
Company’s Strengths
(1) Extensive product portfolio of complex injectables.
(2) Diversified B2B model with a targeted B2C model in India.
(3) Strong manufacturing capabilities.
(4) Robust financial track record.
(5) Experienced and qualified managerial team.
Objectives of the Issue
(1) Funding incremental working capital requirements of about ₹ 769 crores.
(2) Funding capital expenditure requirements of about ₹ 168 crores.
(3) Remaining for General corporate purposes.
Gland Pharma’s Shareholding Pattern
Sr. No. | Name of the Shareholder | Number of Eq Shares on a fully diluted basis | Percentage of the pre-Offer Eq Share capital (%) on a fully diluted basis |
1. | Fosun Singapore | 114,662,620 | 74.00 |
2. | Gland Celsus | 20,094,870 | 12.97 |
3. | Empower Trust | 7,865,000 | 5.08 |
4. | Nilay Trust | 3,749,000 | 2.42 |
Total | 146,371,490 | 94.47 |
Number of shares offered for sale by the promoters
(1) Fosun Singapore up to 19,368,686 Equity Shares
(2) Gland Celsus up to 10,047,435 Equity Shares
(3) Empower Trust up to 3,573,014 Equity Shares
(4) Nilay Trust up to 1,874,500 Equity Shares
Revenue Contributions Country-wise
Countries | FY18 | FY19 | FY20 |
USA | 71.25% | 62.50% | 66.74% |
India | 18.49% | 18.97% | 17.74% |
Europe | 3.39% | 5.38% | 4.44% |
Canada | 1.08% | 1.12% | 1.78% |
Australia | 0.69% | 0.44% | 0.50% |
Rest of the world | 5.10% | 11.59% | 8.80% |
Category-wise Break up (Tentative)*
Category | Shares offered | Value | Percentage |
Anchor Investors | 1.33 cr shares | ₹ 1,735 cr | 30% |
Qualified Institutional Buyers (QIB) | 0.89 cr shares | ₹ 1,156 cr | 20% |
Non-Institutional Investors (NII) | 0.67 cr shares | ₹ 867 cr | 15% |
Retail Individual Investors (RII) | 1.56 cr shares | ₹ 2,024 cr | 35% |
Total | 4.45 cr shares | ₹ 5,782 cr | 100% |
Financials of Gland Pharma (up to 31-Mar-2020)
Particulars/ as on | 31-Mar-2020 | 31-Mar-2019 | 31-Mar-2018 |
Total Revenue | ₹ 2,633 cr | ₹ 2,044 cr | ₹ 1,623 cr |
Total Assets | ₹ 4,086 cr | ₹ 3,524 cr | ₹ 2,929 cr |
EBITDA | ₹ 1094 cr | ₹ 792 cr | ₹ 584 cr |
Profit After Tax (PAT) | ₹ 773 cr | ₹ 452 cr | ₹ 321 cr |
Earnings Per Share (EPS) | 49.88 | 29.16 | 20.72 |
Return on Net Worth (RoNW) | 21.20% | 15.79% | 13.32% |
Basic and Diluted Earnings Per Share (EPS)
Fiscal | Basic EPS (in ₹) | Diluted EPS (in ₹) |
March 31, 2018 | 20.72 | 20.72 |
March 31, 2019 | 29.16 | 29.16 |
March 31, 2020 | 49.88 | 49.88 |
Comparison with Listed Peers
No Listed Peers
Gland Pharma IPO Issue Details
Issue Open | November 9, 2020 – November 11, 2020 |
Issue Type | Book Built Issue IPO |
Issue Size | 43,196,968 Equity Shares of ₹1 (aggregating up to ₹6,479.55 Cr) |
Fresh Issue | 8,333,333 Equity Shares of ₹1 (aggregating up to ₹1,250.00 Cr) |
Offer for Sale | 34,863,635 Equity Shares of ₹1 (aggregating up to ₹5,229.55 Cr) |
Face Value | ₹ 1 Per Equity Share |
Issue Price | ₹ 1,490 to ₹ 1,500 Per Equity Share |
Market Lot | 10 Shares |
Min Order Quantity | 10 Shares |
Listing At | BSE, NSE |
Gland Pharma Bid Details
| Sl No. | Category | Shares Offered/ Reserved | Subscription Status (No. of times) | ||
| 09 Nov 20 (Day 1) | 10 Nov 20 (Day 2) | 11 Nov 20 (Day 3) | |||
| 1. | QIB | 8,639,394 | 0.00 | 0.48 | 6.40 |
| 2. | NII | 6,479,546 | 0.01 | 0.03 | 0.51 |
| 3. | RII | 15,118,939 | 0.08 | 0.15 | 0.24 |
| Total | 30,237,879 | 0.04 | 0.22 | 2.05 | |
Gland Pharma IPO Lot Size and Price for RII
| Application | Lots | Shares | Amount (Cut-off) |
| Minimum | 1 | 10 | ₹15,000 |
| Maximum | 13 | 130 | ₹195,000 |
| Book Running Lead Managers to the Offer |
| 1. Kotak Mahindra Capital Company Limited |
| 2. Citigroup Global Markets India Private Limited |
| 3. Haitong Securities India Private Limited |
| 4. Nomura Financial Advisory and Securities (India) Private Limited |
| Registrar to the Offer |
| Link Intime India Private Limited |
C-101, 1st Floor,247 Park,Lal Bahadur Shastri Marg,vikroli (west), Mumbai -400083 Contact person: Shanti Gopalkrishnan , +91 22 49186200 , glandpharma.ipo@linkintime.co.in |
Registered and Corporate Office: Sy. No. 143 – 148, 150 and 151, Near Gandi Maisamma ‘X’ Roads, D.P. Pally, Dundigal, Dundigal – Gandi Maisamma (M), Medchal-Malkajgiri District, Hyderabad 500 043, Telangana, India; Tel: +91 40 3051 0999 |
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