Gland Pharma has a holistic mission of providing health across a range of injectable drugs across different therapeutic segments and delivery systems, allowing us to grow to seven manufacturing facilities in India with a capacity of approximately 750 million units. These include four facilities with 22 production lines and three Active Pharmaceutical Ingredient (API) facilities for finished formulations.
Gland Pharma aims to use the net proceeds from the new issue to finance incremental needs for working capital, for capital expenditure requirements, and for corporate purposes in general. Srinivas Sadu, Managing Director of Gland Pharma, answering the concerns about its Chinese sponsor, said that the company operates in the healthcare industry, which is an important field, so it does not believe that the company will be affected by any restrictions related to Chinese investment.
The largest IPO in the Indian pharmaceutical sector is likely to be Gland Pharma, which has been given the go-ahead to launch an initial public offer (IPO) by capital market regulator Sebi. Despite the uncertainty of the share market, Gland Pharma shares were seen quoting Rs 180 per share in secondary markets over the expected gland pharma IPO price band of Rs 1,300. Gland pharma is projected to be the biggest pharma IPO in the Indian share market, according to analysts, as this is likely to be around Rs 6,000 cr issue. So far, the largest pharma IPO, which earned Rs 1,741 crore in 2017, has been Eris Lifesciences.
In November 2020, the Gland Pharma IPO will enter the market. The company, via IPO, will raise around 6480 crores. The price range is set at 1490-1500 rupees, with a minimum bid of 10 shares. The price looks on the higher side as per the price. The business looks nice as it began in green with the GMP.
The offer is Priced at a P/E of ~18.52x on annualized EPS of the quarter ended June 2020. Gland Pharma is one of the biggest pharma IPOs. The company has a focus on complex injectables which has high entry barriers and strategic partnerships to penetrate new markets like China which can prove to be a lucrative opportunity for the company.
With a strong product pipeline and more complex products under development, focus on B2B expansion and licensing, and opportunities to enter more therapy areas, the offer looks attractive.
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Price Band 1490-1500
Issue Size – 6,480cr
Opening Date – Nov 9, 2020
Closing Date – Nov 11, 2020
Face Value – Rs 10
Bid Lot – 10
Listing on – BSE, NSE