Gland Pharma IPO - 10 things you should know

1. Gland Pharma is an integrated manufacturer of complex injectable products - it has expanded from manufacturing liquid parenterals to cover other elements of the injectables value chain, including contract development, own development, dossier preparation and filing, technology transfer and manufacturing across a range of delivery systems

2. The Company sells its products to marquee global customers like Sagent Pharmaceuticals, Inc., Fresenius Kabi USA, LLC and Athenex Pharmaceutical Division, LLC in more than 60 countries across the globe including US, Europe, Canada, Australia and India

3. Strong R&D focus with 267 ANDA filings in the US, of which 215 are approved and the rest are pending approval, leading to a portfolio of 1,427 product registrations across the world

4. 4 manufacturing facilities with 22 lines which produce finished formulations, and 3 facilities to manufacture the APIs which in turn feed into the finished formulation products

5. Exemplary and consistent track record in quality of operations and manufacturing, with not a single facility receiving a warning letter from the USFDA since inception

6. The Company has seen significant revenue growth, along with margin expansion - while Revenue from operations has grown at CAGR of 27.38% from FY18 to FY20, the EBITDA for the same period has grown at CAGR of 36.90%, and the PAT for the same period has grown at CAGR of 55.15%

7. The Company aims to continue investing in manufacturing and technology capabilities to expand its product portfolio and increase market share through organic and inorganic means

8. INR 6,480Cr offering with INR 1,250Cr fresh issue and the rest being Offer for Sale by Fosun and other selling shareholders; funds raised from the IPO will be used to fund capital expenditure, working capital requirements and general corporate purposes

9. The sale of shares by Fosun will pave the way to bring in demand from foreign institutional investors in the IPO without breaching the sectoral FPI limit of 74%

10. It is the largest IPO to date in the booming Indian pharma sector; Kotak Mahindra Capital Company, Citigroup Global Markets India, Haitong Securities India and Nomura Financial Advisory and Securities India are the book running lead managers to the issue.

Source : Equity Bulls

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