{"id":617,"date":"2020-10-22T11:55:59","date_gmt":"2020-10-22T11:55:59","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=617"},"modified":"2022-01-31T13:38:02","modified_gmt":"2022-01-31T13:38:02","slug":"chinese-parental-gland-pharma-received-green-signal-from-sebi-to-raise-rs-6000-crores","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/chinese-parental-gland-pharma-received-green-signal-from-sebi-to-raise-rs-6000-crores\/","title":{"rendered":"Chinese parental Gland Pharma received green signal from SEBI to raise Rs. 6,000 crores"},"content":{"rendered":"
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This is the first time that a Chinese parental drug maker is going to list in the Indian indices. Gland pharma, majority owned by Shanghai Fosun pharmaceutical has received green signal from SEBI to raise 6,000 crores from the new issue market. It\u2019s been three years since the Indian equity market has seen any pharma IPO after the Indian drugmaker Eris Lifesciences was listed on the Indian bourses. Despite the ongoing tensions between India and China due to military aggression in the Eastern Ladakh, the market regulator Securities and Executive Board of India (SEBI) has given approval. The issue size of Rs. 6,000 crores is a mix of offer for sale and fresh issue. According to Draft Red Herring Prospectus, the issue comprises of Rs. 1,250 crores to be raised from issuance of fresh equity while the residual amount of Rs. 4,750 crores will be an Offer for Sale. The promoters of the company Fosun Singapore, Gland Celsus, Empoer Trust and Nilay Trust are offloading their stake. U.S.-based Private equity firm KKR is exiting through the offer. Net proceeds from the issue will be utilized for augmenting capital expenditure and taking care of working capital operations in India.<\/p>\n\n\n\n

Also Read: Kalyan Jewellers received green signal from SEBI to raise Rs. 1,750 crores<\/a><\/p>\n\n\n\n

Hyderabad-based-Indian drug-maker was established in 1978 as\na contract manufacturer of small volume liquid parenteral products, to become\none of the largest and fastest growing injectable-focused companies, with a\nglobal footprint across 60 countries, including the United States, Europe,\nCanada, Australia, India and other markets. The company operates a Business to\nBusiness (B2B) model and claims an excellent track record in the development,\nmanufacturing and marketing of complex injectables. The company has extensive\nportfolio of complex products supported by internal R&D and regulatory\ncapabilities. The manufacturing facilities of the company have been approved by\nthe US Food and Drug Administration (USFDA) and United Kingdom Medicines and\nHealthcare Products Regulatory Agency (UK MHRA).<\/p>\n\n\n\n

On the financial front, the company is almost debt-free\nhaving 4.69 crores as borrowing on its balance sheet. The drugmaker had posted\n29% increase in revenues this year while net profits were increased more than\n70%. Return on Net Worth (RONW) of the company is 21.20%. B2B solution drugmakers\nhave performed stellar in the recent years in Indian equity market and the\ncompany is expected to sense tough competition from Divi\u2019s Lab, Eris\nLifesciences, Jubilant Lifesciences, Hikal, Dishman Carbogen in the listed\nspace, still the product portfolio offered by the company is completely\ndistinct.<\/p>\n\n\n\n

Citi, Nomura, Kotak Mahindra Capital and Haitong Securities\nare the merchant bankers who are working on the IPO regulations. Cyril\nAmarchand Mangaldas and Co. is advising Gland Pharma, S&R Associates is\nadvising the merchant bankers while Khaitan and Co is advising the promoters.<\/p>\n

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This is the first time that a Chinese parental drug maker is going to list in the Indian indices. Gland pharma, majority owned by Shanghai […] Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":618,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180,70],"tags":[],"class_list":["post-617","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-ipo"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/617","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=617"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/617\/revisions"}],"predecessor-version":[{"id":619,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/617\/revisions\/619"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/618"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}