Fosun kicks off biggest pharma IPO in India

by BLOOMBERG / pic by BLOOMBERG

HONG KONG • Gland Pharma Ltd and its shareholders are looking to raise as much as 64.5 billion rupees (RM3.87 billion) in what would be India’s biggest IPO by a pharmaceutical firm.

The company and existing holders including Fosun Pharma Industrial Pte Ltd are selling as many as 43.2 million shares in the offering, according to terms of the deal obtained by Bloomberg News. The shares are marketed at 1,490 rupees to 1,500 rupees each.

At US$871 million (RM3.66 billion), Gland Pharma’s IPO would be the largest ever by a pharmaceutical firm in India, way above the US$260 million share sale by Eris Lifesciences Ltd in 2017, according to data compiled by Bloomberg. It would also be the country’s second-biggest this year after SBI Cards & Payment Services Ltd’s US$1.44 billion offering.

Shanghai Fosun Pharmaceutical (Group) Co Ltd acquired a 74% stake in Gland Pharma for about US$1.1 billion in 2017. Fosun Pharma, backed by Chinese billionaire Guo Guangchang, had originally sought to buy an 86% stake in the closely-held Indian drugmaker from an investor group including KKR & Co. However, a stake of such a size must be signed off by the Cabinet Committee on Economic Affairs, which was poised to reject the move, Bloomberg News reported at that time.

The company plans to take orders from anchor investors on Nov 6 and to start the public offering Nov 9, the terms show. It targets to list in Mumbai on Nov 20. — Bloomberg