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Gland Pharma raises Rs 1943.86 crore from Anchor Investors by allocating 12,959,089 equity shares at the upper price band of Rs 1500 per equity shares


Hyderabad, NFAPost: Gland Pharma set a new history in pharma company IPO by oversubscribing it 2.05 times as 70 marquee global and domestic funds came in as anchor investors.

The company raised Rs 1943.86 crore from anchor investors. Gland Pharma allocated 12,959,089 equity shares at the upper price band of Rs 1500 per equity shares to anchor investors.

Gland Pharma’s IPO price band was fixed at Rs 1490 to Rs 1500 per equity share to raise Rs 6,480 crore. Hyderabad headquartered pharma company set Rs 1,250 crore for the fresh issue of 3,48,63,635 shares for sale and the rest being Offer for Sale as part of the IPO.

Capital expenditure

According to the company source, Gland Pharma to use Rs 1,250 crore fresh funds for capital expenditure and working capital requirements. The pharma company has made it clear that it has an incremental working capital requirement to the tune of Rs. 769.50 crore and capital expenditure requirements to the tune of Rs 168.00 crore along with other general corporate purpose expenditures. The IPO will fetch Rs 6,480 crore at the upper end of the price band.

Gland Pharma Limited is one of the fastest-growing generic injectables-focused companies by revenue in the United States from 2014 to 2019. The company sells its 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.

Gland Pharma was founded by PVN Raju in 1878 and later China-headquartered Fosun Pharma acquired 74% stake in the company in 2017. The company has an extensive track record in complex injectables development, manufacturing and marketing and a close understanding of the related sophisticated scientific, technical and regulatory processes.

Manufacturing facilities

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 7 manufacturing facilities in India, comprising 4 finished formulations facilities with a total of 22 production lines and 3 API facilities with manufacturing capacity for finished formulations of approximately 75.5 crore units per annum.

Overseas investors including SmallCap World Fund INC, Government of Singapore, The Nomura Trust And Banking Co and Goldman Sachs were few names. On the domestic front, few names which participated in the anchor book includes names like Axis Mutual Fund, SBI Mutual Fund, Aditya Birla Sun Life Mutual Fund, ICICI Prudential Mutual Fund, Nippon India Mutual Fund and Kotak Mutual Fund.

The lot size is 10 which means that investors have to apply for multiples of 10 shares and in multiples thereafter. 35% of shares are reserved for the retail segment. Gland Pharma shares are likely list on BSE and NSE on November 20 and the IPO allotment is likely to be finalised around November 17. Link Intime India Pvt is the registrar of the Gland Pharma IPO and will manage allocation and refund.

The IPO is being managed by Kotak Mahindra Capital Company, Citigroup Global Markets India, Haitong Securities India and Nomura Financial Advisory and Securities (India).

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