China’s Fosun-owned Gland Pharma gets Sebi nod for proposed ₹6,000 cr IPO1 min read . Updated: 22 Oct 2020, 11:57 AM IST
- Gland Pharma had filed the draft red herring prospectus for its IPO with Sebi in July. It develops, manufactures and markets complex injectables
- The Fosun group-owned company will use the proceeds of the IPO for capital expenditure and working capital requirements
MUMBAI: Gland Pharma Ltd, which is majority owned by China’s Fosun group, has received the Securities and Exchange Board of India’s (Sebi) approval to go ahead with its proposed ₹6,000 crore IPO, a person aware of the development told Mint.
The company, backed by China's Fosun Pharma, had filed the draft red herring prospectus (DRHP) for its IPO with Sebi in July. It develops, manufactures and markets complex injectables.
The company plans to raise ₹1,250 crore in fresh capital through the IPO, while the existing promoters plan to sell around 34 million shares, which could be worth around ₹4,750 crore.
The company will use the proceeds of the IPO for capital expenditure and working capital requirements.
“There is a strong demand for pharma companies and the Gland Pharma IPO too is seeing that. The IPO may be launched sometime next month," said the person cited above.
Fosun Pharma acquired 74% stake in the company in 2017.
Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Pvt Ltd, Haitong Securities India Pvt Ltd, and Nomura Financial Advisory and Securities (India) Pvt Ltd are advising the company on the IPO.
A spokesperson for Gland Pharma could not be immediately reached for a comment.