About the Company:
Gland Pharma Ltd is a generic injectables-focused company and sell the products primarily under a business to business (“B2B”) model in over 60 countries.
Company was established in Hyderabad, India in 1978 and has a professional management team and one of our Promoters, Shanghai Fosun Pharma, is a global pharmaceutical major.
Company has extensive track record in complex injectables development, manufacturing and marketing and a close understanding of the related sophisticated
scientific, technical and regulatory processes.
company sells the products in various countries including the United States, Europe, Canada, Australia, India and the Rest of the world.
Company’s Manufacturing Facility:
Gland Pharma has seven manufacturing facilities in India, comprising four finished formulations facilities with a total of 22 production lines and three API facilities.
Company has increased our manufacturing capacities from 670 million units per annum in Fiscal 2018 to 755 million as of March 31, 2020 and are expanding our manufacturing footprint in order to increase our product development and manufacturing capabilities.
As of March 31, 2020, we had manufacturing capacity for finished formulations of approximately 755 million units per annum.
Revenue from operations based on the Customer Location: (Percentage wise)
Should you Invest in Gland Pharma?
- To better understand things lets go back to the year 2017, when a chineese pharma giant Fosun pharma made headlines by acquiring majority stake (74%) in an indian
company named Gland Pharma. The stake was bought from US private equity investor KKR.
- The news was like “Shanghai Fosun Pharmaceutical (Group) Co acquired a 74 percent stake in Gland Pharma for about $1.1 billion in 2017”.
- Now if we Check Gland Pharma’s Revenue and Net profit in the year 2017 & 2020 compare, it has grown by many times.
- In fact the profit (around 300 cr) Gland pharma made in the entire Year of 2007 was covered in just 1 quarter of FY21 (ie. the 313 cr in June quarter).
- So this justifies the Valuation company is asking for, in 2020.
Now apart from valuation lets check other parameters like “the promoter, “future growth prospectus“, “Expansion into Various Geographies”
1) The Promoter (“Shanghai Fosun Pharmaceutical (Group)
- Gland pharma’s promoter is a global Pharmaceutical giant having global presence, and its always better for any company to have a Strong backing and that too if its from a global giant then its too good for the Company.
2) Expansion into Various Geographies.
- As of March 31, 2020, company’s products were sold in over 60 countries, including the United States, Europe, Canada, Australia, India and the Rest of the world but inspite of backing from a Chinese promoter the revenue from china is in single digits.
- And to increase its presence in china company has now started taking initiatives by filing for approval and in the coming years we should be able to see revenue jump from the china market.
3) Future Growth Prospectus:
- Gland pharma does contract manufacturing, develops complex injectables and this Segment has very high growth potential with high entry barriers, So growth wise company may show the same type growth which it has shown in the past.
- Moreover company will be using around Rs 1,250 crore from the IPO proceedings for building a new Active Pharmaceutical Ingredient (API) factory in Visakhapatnam and expand existing facilities at Pashamylaram, near Hyderabad.
4) Company maintains high Standards.
- From the beginning itself company has maintained high compliance keeping in mind the USFDA standards because of which you will be surprised to know that “Gland pharma has never received a USFDA warning letter“
- Mr. Yiu Kwan Stanley Lau (Designation: Chairman and Independent Director)
- Mr. Srinivas Sadu (Designation: MD and CEO)
Company’s Top Shareholders:
Objectives of the Issue:
- Funding incremental working capital requirements of our Company;
- Funding capital expenditure requirements of our Company.
- General corporate purposes.
Financials of the Company:
|(in Crores)||FY 18||FY 19||FY 20||30th June 2020|
Positives for the Company:
Diversified B2B-led model across markets.
- Company’s primary business model is B2B, covering IP-led, technology transfer and contract manufacturing models, complemented by a B2C model in our home market of India.
- In Fiscals 2019 and 2020, our revenue generated from the B2B model constituted 95.57% and 95.99%, respectively, of our total revenue from operations for the relevant year.
Extensive portfolio of complex products supported by internal R&D and regulatory capabilities.
- Company is present in sterile injectables, oncology and ophthalmics, and focus on complex injectables, NCE-1s, First-to-File products and 505(b)(2) filings.
- Company is expanding our development and manufacturing capabilities in complex injectables such as peptides, long-acting injectables, suspensions and hormonal products as well as new delivery systems such as pens and cartridges.
- As of March 31, 2020, our products were sold in over 60 countries, including the United States, Europe, Canada, Australia, India and the Rest of the world.
Successful track record of operating a B2B model.
- Gland Pharma a successful track record of operating a B2B model with leading pharmaceutical companies such as Sagent Pharmaceuticals, Inc. and Apotex Inc. as well as Fresenius Kabi USA, LLC and Athenex Pharmaceutical Division, LLC in the United States and the Rest of the world using long-term development, licensing and manufacturing and supply agreements.
Strong Promoter background. (promoted by Shanghai Fosun Pharma)
- One of our Promoters, Shanghai Fosun Pharma, is a global pharmaceutical major with extensive pharmaceutical manufacturing, distribution and R&D expertise internationally, and in China.
- Company’s relationship with Shanghai Fosun Pharma provides us with widened market access opportunities arising from its own continuing internationalisation.
- In particular, we have benefitted from Shanghai Fosun Pharma’s established presence in China and Africa, both of which we consider to be key growth markets for injectables.
|Issue Opens on||9th November 2020|
|Issue Closes on:.||11th November 2020|
|Issue Price||Rs.1490- 1500|
|Retail Category Allocation||35%|
|Minimum Lot||10 Shares|
|Issue Size||Rs.6480 cr|
|Market Cap||Rs.24,492 cr|
|Listing at||NSE & BSE|
|Equity Shares Offered (Fresh)||83,33,333|
|Equity Shares Offered (OFS)||3,48,63,635|
|Total Equity Shares Offered (Fresh + OFS)||4,31,96,968|
|Equity Shares Prior||15,48,49,490|
|Equity Shares after the issue||16,32,82,823|
|Finalization of Basis of Allotment||On or before 17th November 2020|
|Initiation of Refunds||On or before 18th November 2020|
|Credit of Equity Shares:||On or before 19th November 2020|
|Listing Date:||On or before 20th November 2020|
Subscription Details: (Will be Updated)
|(Subscription-Category-Wise (no. of times) Till time : 05:00 PM)||Shares Offered||9th Nov||10th Nov||11th Nov|
Grey Market Premium : (Rajkot)
|IPO||Grey Market premium||Kostak Rates|
|Gland Pharma||42 – 44||200 – 250|
Note: Grey Market Premium is just an indicative price prevailing in the market ,However it keeps on changing on daily basis based on various conditions in the market.(So don’t apply by just looking at GMP)
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
Also Read: Complete List of Upcoming IPOs in India
|Check IPO Allotment Status:|
Link InTime Website https://linkintime.co.in/PublicIssue/
BSE IPO Website: https://www.bseindia.com/IPO/Allotment
|Company Contact Info:|
|Gland Pharma Limited
Sy. No. 143 – 148, 150 and 151
Near Gandi Maisamma ‘X’ Roads
D.P. Pally, Dundigal, Dundigal – Gandi Maisamma (M)
Hyderabad 500 043
Tel: +91 40 3051 0999
|IPO Registrar Info:|
|Link Intime India Private Limited
C-101, 1st Floor
247 Park Lal Bahadur Shastri Marg
Vikhroli (West) Mumbai 400 083
Tel: +91 22 4918 6200
Investor e-mail: email@example.com