By Health In Five Writer
Gland Pharma has received approval from market regulator SEBI to launch an initial public offering (IPO) worth Rs 6,000 crore, Moneycontrol reported quoting sources. The Hyderabad-based drugmaker would be the first company with Chinese parentage to launch an IPO in the Indian equity market. The company had filed its papers in July 2020.
The nod from the Securities and Exchange Board of India (Sebi) comes amid a buoyant phase of valuations in the pharma sector and frosty diplomatic ties between India and China due to military aggression in Eastern Ladakh earlier this year, leading to casualties on both sides.
The report said Gland could issue an offer for sale for 34,863,635 equity shares by the existing shareholders of the company.
Most of the IPO proceeds will be used for capex and working capital for its Indian operations. The offer is likely to comprise a fresh issue aggregating up to Rs 1,250 crore and an offer for sale of up to Rs 4,750 crore.
Citi, Kotak Mahindra Capital, Nomura, and Haitong Securities are the merchant bankers working on the issue.
Fosun Pharma and Fosun International are the two biggest shareholders in Gland Pharma as they hold 74 percent equity interest in the company indirectly, a valuation of about $1.09 billion.