Gland Pharma
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 09 Nov 2020 – 11 Nov 2020
- Listing date
- 20 Nov 2020
- Face value
- ₹1 per share
- Issue price
- ₹1,500 per share
- Lot size
- 10 shares
- Total issue size
- ₹6,480 Cr
- Promoter holding
- 74.00% → 58.00% pre-issue → post-issue
- ISIN
- INE068V01023
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Citigroup Global Markets India Pvt.Ltd.
- Registered office
- Sy. No. 143 - 148, 150 and 151,, Near Gandi Maisamma 'X' Roads, D.P. Pally,Dundigal, Medchal-Malkajgiri District, Hyderabad, Telangana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 1,29,59,089 | — | — |
Application size
Minimum 10 shares per lot, in multiples, at ₹1,500
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 10 | ₹15,000 |
| Retail (max) | 13 | 130 | ₹1,95,000 |
| S-HNI (min) | 14 | 140 | ₹2,10,000 |
| S-HNI (max) | 66 | 660 | ₹9,90,000 |
| B-HNI (min) | 67 | 670 | ₹10,05,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|
About Gland Pharma
Gland Pharma Limited is an Indian pharmaceutical company incorporated in 1978 and converted to a public limited company in 1995. The company specializes in the development, manufacturing and marketing of generic injectable pharmaceutical products. It operates primarily under a business-to-business (B2B) model in developed markets such as the United States, Europe, Canada and Australia, where it engages in IP-led development, technology transfer and contract manufacturing arrangements with marketing partners. In India, it operates primarily under a business-to-consumer (B2C) model, directly marketing and selling products to hospitals, nursing homes and government facilities, while also providing contract manufacturing services. The company has a consistent compliance track record across multiple regulatory regimes and extensive track record in complex injectables development, manufacturing and marketing. Its manufacturing activities are conducted at seven facilities in Andhra Pradesh and Telangana. The company has three dedicated API facilities providing in-house manufacturing capabilities for critical APIs.
Company Analysis
from RHPGland Pharma Limited is one of the fastest growing generic injectables-focused companies by revenue in the United States, selling complex injectable pharmaceutical products in B2B and B2C models across over 60 countries including the United States, Europe, Canada, Australia, India and Rest of the world.
Gland Pharma Limited is an Indian pharmaceutical company incorporated in 1978 and converted to a public limited company in 1995. The company specializes in the development, manufacturing and marketing of generic injectable pharmaceutical products. It operates primarily under a business-to-business (B2B) model in developed markets such as the United States, Europe, Canada and Australia, where it engages in IP-led development, technology transfer and contract manufacturing arrangements with marketing partners. In India, it operates primarily under a business-to-consumer (B2C) model, directly marketing and selling products to hospitals, nursing homes and government facilities, while also providing contract manufacturing services. The company has a consistent compliance track record across multiple regulatory regimes and extensive track record in complex injectables development, manufacturing and marketing. Its manufacturing activities are conducted at seven facilities in Andhra Pradesh and Telangana. The company has three dedicated API facilities providing in-house manufacturing capabilities for critical APIs.
Objects of the Issue
- To fund incremental working capital requirements of the Company ₹7,695.00 million p.16
- To fund incremental capital expenditure requirements of the Company ₹1,680.00 million p.16
- General corporate purposes ₹2,864.68 million p.16
- Funding incremental working capital requirements of our Company ₹7,695.00 million p.76
- Funding capital expenditure requirements of our Company ₹1,680.00 million p.76
- General corporate purposes ₹2,864.68 million p.76
- Fresh Issue proceeds - not specifically detailed in this part as to specific uses beyond general description ₹12,500.00 million p.296
Issue Structure
- Total Issue
- ₹64,795.45 million
- Fresh Issue
- ₹12,500 million comprising 8,333,333 Equity Shares
- Offer for Sale
- ₹52,295.45 million comprising 34,863,635 Equity Shares
- Price Band
- ₹1,490 to ₹1,500 per Equity Share
- Lot Size
- 10 Equity Shares and multiples of 10 Equity Shares thereafter
- Face Value
- ₹1 each
Business Model
The company earns revenue primarily through two business models: (1) B2B model in developed markets (United States, Europe, Canada, Australia, Rest of world), covering IP-led development with licensing fees and milestone payments tied to product development stages, technology transfer with technology transfer fees and royalties, and contract manufacturing with per-unit dose payments and profit share/royalties; (2) B2C model in India where products are marketed and sold directly to end customers such as hospitals, nursing homes and government facilities, with a complementary B2B CMO model providing fill and finish services for injectables to other pharmaceutical companies. As of June 30, 2020, injectables constituted 99.51% of revenue from operations.
Business Segments
SWOT Analysis
- • Tax benefits under Special Economic Zone (SEZ) regime for two facilities(p.43)
- • Flexible labor model using independent contractors to control costs(p.43)
- • Mix of freehold and leased manufacturing facilities with long-term lease arrangements(p.43)
- • Vertically integrated manufacturing with consistent USFDA compliance record(p.121)
- • In-house API manufacturing for critical products reduces supply chain risk(p.121)
- • Fastest-growing generic injectables company in US market 2014-2019(p.114)
- • Strong B2B model with long-term partnerships and predictable cash flows(p.116)
- • Diversified product portfolio across therapeutic areas and delivery systems(p.120)
- • Substantial manufacturing capacity with 755 million units per annum(p.120)
- • Strategic backing from Shanghai Fosun Pharma with access to Chinese and African markets(p.124)
- • Strong revenue and profitability growth trajectory(p.121)
- • Established manufacturing expertise in injectable formulations with long operational history(p.194)
- • Diversified product portfolio across multiple pharmaceutical categories(p.181)
- • Strong profitability with consistent revenue growth trajectory(p.191)
- • Solid cash generation and balance sheet strength(p.193)
- • One of the fastest growing generic injectables companies in the US(p.247)
- • Extensive R&D expertise in complex injectables development(p.247)
- • Strong vertical integration with API manufacturing capacity(p.248)
- • Diversified manufacturing capacity across multiple units(p.248)
- • Experienced centralized R&D team with specialized expertise(p.247)
- • Global market presence across 60+ countries with regulatory compliance track record(p.247)
- • Professional management with global pharmaceutical backing(p.247)
- • Established manufacturing infrastructure across multiple facilities with significant capacity utilization(p.259)
- • Diversified portfolio with 51 new product launches driving export growth(p.259)
- • Strong revenue growth with 28.81% increase in Fiscal 2020(p.258)
- • Low financial leverage with minimal debt and strong cash position(p.264)
- • Significant profitability improvement with 71.04% profit growth(p.260)
- • Reliance on contract labour with potential wage payment liabilities(p.43)
- • Some leased premises lack proper legal documentation (unstamped and unregistered)(p.43)
- • Potential contract labour absorption obligations(p.43)
- • Insurance coverage does not protect against personal accidents, environmental damage, terrorism, or war(p.44)
- • Reliance on third-party industry report (IQVIA) not independently verified(p.45)
- • Dependence on government contracts with termination-for-convenience clauses(p.45)
- • Promoter control with potential conflict of interest (74% pre-Offer, 58.36% post-Offer)(p.46)
- • Related party transactions with no assurance of favorable terms(p.45)
- • Heavy dependence on US market for 62-71% of revenue(p.120)
- • Significant reliance on key marketing partners for commercialization(p.120)
- • Complex manufacturing processes create high operational costs and execution risks(p.105)
- • Limited presence in emerging markets beyond India(p.120)
- • Concentrated geographic footprint with all seven manufacturing facilities in India(p.121)
- • Heavy dependence on group company transactions and related party dealings(p.183)
- • Loss-making subsidiary Shanghai Henlius with significant accumulated losses(p.182)
- • Concentration of equity shares held by single promoter(p.168)
- • Concentration of revenue in top customers(p.248)
- • Dependence on new product launches and regulatory approvals(p.247)
- • Exposure to regulatory withdrawal of marketing approvals(p.247)
- • Concentration of revenue in United States market creating customer dependency(p.266)
- • Pending regulatory disputes related to employee state insurance contributions(p.272)
- • Pending litigation on fuel surcharge adjustment demands from power distribution companies(p.273)
- • Strategic acquisitions and partnerships to strengthen product portfolio(p.44)
- • Generic injectables market expected to grow at 16.1% CAGR from 2020-2025 in US(p.113)
- • High-value patent expiry cliff of $67.7 billion in injectables molecules 2021-2025(p.113)
- • Expansion of product portfolio in complex injectables with high entry barriers(p.122)
- • China pharmaceutical market growing to $116 billion by 2025 with generic opportunity(p.114)
- • Rising prevalence of chronic diseases driving injectable demand globally(p.104)
- • Growing demand for pre-filled syringes and new drug delivery systems(p.112)
- • Strategic expansion into underserved geographies through Fosun partnerships(p.125)
- • Expansion through acquisition of additional land and manufacturing capacity(p.190)
- • Leveraging group company's international presence and distribution networks(p.177)
- • Growing scale of operations with revenue trajectory showing sustained growth(p.191)
- • Entry into public markets through IPO to access capital for growth initiatives(p.188)
- • Expansion of manufacturing capacity for complex injectables(p.248)
- • Growth through B2B business model in regulated markets(p.248)
- • Leverage brand strength in India's domestic market(p.248)
- • Large ANDA portfolio with pending approvals(p.247)
- • Expansion of CDMO and CMO services business model(p.255)
- • Growth in international markets with export incentives(p.259)
- • New product development pipeline including ready-to-use formulations(p.266)
- • Tax policy changes and potential loss of export promotion benefits(p.43)
- • Power and water supply disruptions increasing production costs(p.44)
- • Labor unrest and unionization increasing wage costs(p.44)
- • Indian economic slowdown and policy changes(p.46)
- • Global economic volatility and emerging market instability(p.47)
- • Political instability, policy changes, and regulatory uncertainties in India(p.47)
- • GST policy ambiguities and adverse tax interpretation(p.48)
- • Rising employee compensation in India eroding competitive advantage(p.48)
- • Natural disasters and catastrophic events disrupting operations(p.48)
- • India sovereign debt rating downgrade risks(p.48)
- • Trade policy changes and tariff uncertainties affecting imports/exports(p.48)
- • Brexit creating uncertain political and economic environment(p.49)
- • Intense pricing pressure and generic price erosion in developed markets(p.100)
- • High regulatory scrutiny with past warning letters affecting industry competitors(p.105)
- • Drug shortages and quality issues in injectables segment creating supply chain risks(p.106)
- • Consolidation trend and acquisition activity reducing competitive opportunities(p.107)
- • Increasing API sourcing disruptions from China and India(p.117)
- • China market facing extreme price deflation through high-volume tenders(p.115)
- • COVID-19 pandemic causing delays in clinical trials, innovation and supply chain disruptions(p.118)
- • Regulatory and compliance requirements for pharmaceutical manufacturing and distribution(p.181)
- • Legal proceedings involving attached equity shares of existing investors(p.147)
- • Exposure to foreign exchange fluctuations in international operations(p.193)
- • Intensity of competition in pharmaceutical manufacturing and generic drugs sector(p.180)
- • Regulatory risk across multiple jurisdictions(p.247)
- • Currency fluctuation exposure(p.248)
- • Customer inventory management and demand volatility(p.248)
- • Production cost inflation and supply chain risks(p.248)
- • COVID-19 pandemic impact on business operations and supply chains(p.267)
- • Economic slowdown in India affecting domestic market demand(p.267)
- • Challenging global economic conditions affecting the Indian market(p.267)
- • Foreign investment restrictions under Indian law limiting capital attraction(p.267)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Fosun Pharma Industrial Pte. Ltd | Promoter Selling Shareholder | 74.00% | — |
| Shanghai Fosun Pharmaceutical (Group) Co., Ltd. | Promoter | — | — |
| Fosun Singapore | Promoter | 74.00% | 70.22% |
| Shanghai Fosun Pharma | Promoter/Promoter Group | 74% | — |
| Fosun Singapore | Promoter | 74.00% | — |
| Shanghai Fosun Pharma | Promoter | — | — |
| Fosun Pharma Industrial Pte. Ltd., Singapore | Holding Company / Promoter | 74.00% | — |
| Gland Celsus Bio-Chemicals Pvt Ltd. | Promoter Group | 12.97% | — |
| Unknown (7,867,000 shares) | Promoter Group | 5.08% | — |
| Fosun Singapore | Promoter/Promoter Group | 74% | — |
| Shanghai Fosun Pharma | Promoter/Promoter Group | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.