The Hyderabad-based company Gland Pharma Ltd. has received regulatory approvals of Securities Exchange Board of India’s (sebi) go-ahead to launch an initial public offering (IPO) that includes fresh issue of shares worth up to Rs 1,250 crore. Apart from the fresh issue, there is an offer for sale of over 3.4 crore shares as part of the IPO. The company, backed by China's Fosun Pharma, develops, manufactures and markets complex injectables. The company filed Red herring prospects in July and obtained SEBI’s observation on October 19 to float an public offer.

SEBI’s observation is obligatory for any company to launch IPOs and follow-on public offer and rights issue. Going by the draft papers, the IPO comprises fresh shares worth up to Rs 1,250 crore and offer for sale of up to 3,48,63,635 shares. The offer for sale includes sale of up to 1,93,68,686 shares by Fosun Pharma Industrial Pte Ltd., 1,00,47,435 shares by Gland Celsus Bio Chemicals Pvt. Ltd., 35,73,014 shares by Empower Discretionary Trust and 18,74,500 shares by Nilay Discretionary Trust.

According to investment banking sources, the Initial public offering would be worth over Rs 5,000 crore. This could in all probability be the first big Indian company with a Chinese parent to go for public listing. The company's promoters are Fosun Singapore and Shanghai Fosun Pharma. The proceeds from the new issue of shares will be used for working capital, capital expenditure and general corporate purposes, as per the draft papers. Gland Pharma was founded by PVN Raju in 1978 and Fosun Pharma acquired 74% stake in the company in 2017. Shares of the company are proposed to be listed on the BSE and the NSE.

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