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Gland Pharma Limited is launching an IPO on November 9, 2020. Here are all the important details of the IPO.

How to Apply for Gland Pharma IPO?

You can apply for Gland Pharma IPO on Groww easily via UPI. Go to IPO ( login to your account). There you would be able to see the list of all open IPOs. Select Gland Pharma IPO and click on ‘Apply’. You would be able to invest in this IPO on November 09, 2020. IPO is also live on Groww app as well. To access IPOs you can go the to stocks tab and see the list of upcoming IPOs under the top losers card. Please update your app to the latest version to view the IPO option.

Gland Pharma IPO Details

IPO DateNovember 09, 2020 to November 11, 2020
Issue TypeBook Built Issue IPO
Issue Size43,196,968 Equity Shares of Re.1 totaling up to Rs.6,459.55 Crore
Fresh Issue8,333,333 Equity Shares of Re.1 totaling up to Rs.1,250.00 Crore
Offer for Sale34,863,635 Equity Shares of Re.1 totaling up to Rs. 5,229.55 Crore
Face ValueRe.1 per equity share
IPO PriceRs.1490 to Rs.1500 per equity share
Market Lot10 Shares
Min Order Quantity10 Shares
Listing AtBSE, NSE

Gland Pharma IPO Tentative Timetable

Bid/Offer Launch dateNovember 09, 2020
Bid/Offer Last dateNovember 11, 2020
Basis of Allotment finalization dateNovember 17, 2020
Initiation of RefundsNovember 18, 2020
Credit of Shares to Demat AcctNovember 19, 2020
IPO Shares Listing DateNovember 20, 2020

About the Company – Gland Pharma 

Incorporated in 1978, Gland Pharma is one of the largest and fastest-growing injectable-focused companies in the United States of America from 2014-2019. The company has a portfolio of injectable products across various therapeutic areas and delivery systems.

It has a presence in sterile injectables, oncology and ophthalmics, and focuses on complex injectables, NCE-1s, First-to-File products and 505(b) (2) filings. It sells its products through a business-to-business (B2B) model in more than 60 countries across the globe (as of June 30, 2020). The list of countries includes the United States, Europe, Canada, Australia, India, etc.

Gland Pharma has seven manufacturing facilities in India, comprising four finished formulations facilities with a total of 22 production lines and three API facilities. It has a track record of operating a B2B model with some leading pharmaceutical companies like Sagent Pharmaceuticals Inc., Apotex Inc., Fresenius Kabi USA LLC, Athenex Pharmaceutical Division LLC (US), etc. This B2B model is complemented by a business-to-customer (B2C) model in India – the home market of Gland Pharma, leveraging its brand strength and sales network.

1. Strengths of Gland Pharma 

  • Gland Pharma has extensive and vertically integrated injectables manufacturing capabilities with a consistent regulatory compliance track record
  • It has a diversified B2B-led model across markets, complemented by a targeted B2C model in India
  • Gland Pharma has developed an extensive portfolio of complex products supported by internal R&D and regulatory capabilities
  • The company has a track record of growth and profitability from a diversified revenue base with healthy cash flows
  • It has an experienced management and qualified team

2. Objects of the Offer

Gland Pharma Limited proposes to utilize the net proceeds from this issue towards the following objects:

  1. Funding incremental working capital requirements of our Company;
  2. Funding capital expenditure requirements of our Company; and
  3. General corporate purposes

3. Risk Factors

  • The injectable manufacturing industry is heavily regulated and Gland Pharma’s business activities require various approvals, licenses, registrations and permissions. If there is any change to such regulations or failure or delay in obtaining necessary permits or approvals, or if such permits or approvals are revoked or not renewed for any reason, its business, financial condition, cash flows, and results of operations may be adversely affected.
  • The success of Gland Pharma is dependent on its business arrangements with its marketing partners and customers for the sale of its products. If any of these arrangements is terminated for any reason, or if its marketing partners fail to fulfill their obligations under the relevant agreements or otherwise do not effectively sell or market our products, or if its relationships with any of its marketing partners and customers are disrupted, its business, financial condition, cash flows, and results of operations may be adversely affected.
  • If its API production is interrupted or it fails to produce or procure high-quality APIs in the quantities it requires in a cost-effective manner, sales of its products could be delayed or interrupted.
  • Any manufacturing or quality control problems may disrupt Gland Pharma’s business operations, damage its reputation for high-quality production and expose it to potential litigation or other liabilities, which would negatively impact its business prospects, cash flows, results of operations, and financial condition.
  • Gland Pharma’s business is dependent on the sale of its products to key customers and in key markets, particularly the United States, Europe, Canada, and Australia. The loss of such customers or a significant reduction in purchases by such customers in these markets could materially adversely affect its business, cash flows, results of operations, and financial condition.
  • A significant portion of the company’s income is dependent on sales of its key injectable formulations. If the sales volume or pricing of such products declines in the future, or if it can no longer sell any of the key compounds for any reason, its business, financial condition, cash flows, and results of operations could be materially adversely affected.
  • Gland Pharma is susceptible to product liability claims and associated risks of litigation that could expose it to material liabilities, loss in revenues, and increased expenses and thus may have a material adverse effect on its business.
  • The company’s profitability, cash flows, and results of operations may be adversely affected in the event of increases in the price of raw materials, fuel costs, labor, or other inputs, a shortfall in the supply of raw materials as well as an interruption in the supply of machinery and equipment required for its manufacturing facilities.
  • The injectables pharmaceutical market is highly competitive, both globally and domestically, and if the company is unable to compete successfully against existing or new competitors, its revenues could decline and its future profitability could be affected.
  • Gland Pharma has significant working capital requirements. If it experiences insufficient cash flows to fund its working capital requirements or if it is not able to provide collateral to obtain letters of credit, bank guarantees, and performance bonds in sufficient quantities, there may be an adverse effect on its business, cash flows, and results of operations.

Here is a quick look at some important information about Gland Pharma:

4. Overview of Gland Pharma’s Financials

30-Jun-20

31-Mar-20

31-Mar-19

31-Mar-18

Total Assets

4,691.27

4,086.04

3,523.55

2,929.47

Total Income

916.29 (3-month)

2,772.41

2,129.77

1,671.68

Total Expenses

496.29 (3-month)

1,779.54

1,423.49

1,170.22

Profit After Tax

313.59 (3-month)

772.86

451.86

321.05

All amounts in INR Crore

5. Promoters of Gland Pharma IPO

  1. Fosun Singapore
  2. Shanghai Fosun Pharma

Summing Up

As you can see from the financial records, Gland Pharma has posted strong growth in revenues over the last three years. It has been consistent in its performance with strong fundamentals. Before you invest, ensure that you read through the company’s financials and the Red Herring Prospectus (RHP) carefully.

Happy Investing!

Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.

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