Gland Pharma Ltd, one of India's biggest makers of injectable drugs, plans to raise up to $871 million (64.5 billion rupees) in what might be India's biggest initial public offering by a pharmaceutical company.
The company is selling 43.2 million shares Nov. 9, according to terms of the deal. The shares are priced at $20.02 (1,490 rupees) to $20.16 each. The issue closes Nov. 11.
Gland Pharma is a subsidiary of Shanghai Fosun Pharmaceutical (Group) Co., Ltd., which is majority owned by Fosun International.
In 2016, Fosun Pharmaceutical pulled off the largest India corporate takeover by a China company in acquiring Gland Pharma for $1.26 billion. The acquisition of the 74% stake in Gland Pharma was completed in October 2017.
Fosun Singapore, a subsidiary of Fosun Pharmaceutical, directly owns the 74% stake in Gland Pharma. Other investors in the company are Gland Celsus Bio Chemicals Pvt., which owns 12.97%, along with Empower Discretionary Trust with 5.08% and Nilay Discretionary Trust with 2.42%.
Gland Pharma's initial public offering consists of some 34.9 million secondary shares from existing shareholders. Fosun Pharma intends to sell as many as 19.4 million shares in the initial public offering. Gland Celsus, Empower Trust and Nilay Trust are selling a combined 15.5 million shares.
Gland Pharma plans to take orders from anchor investors Nov. 6. The public offering will start Nov. 9 with Nov. 20 being the target date for listing on the Bombay Stock Exchange.
The previous high for an initial public offering in India's pharmaceutical industry was Eris Lifesciences Ltd. in 2017 which made $260 million. The Gland Pharma initial public offering will also be India's second biggest this year after the $1.44 billion offering from SBI Cards & Payment Services Ltd.
Gland Pharma will use the proceeds on working capital, capital expenditure and general corporate purposes. It filed its draft papers in July and received the go ahead last week from the Securities and Exchange Board of India - the government regulator of the securities and commodity markets.
Gland Pharma reported $374 million in revenue for its fiscal year ended March compared with $287 million in the same period a year ago.
