Gland Pharma Limited (Gland) is coming out with an IPO comprising a fresh issue of equity shares amounting to Rs. 1,250 crore and an offer for sale (OFS) of 3.48 crore equity shares with a face value of Re. 1 per share. The price band for the said issue is Rs. 1,490-1,500.
Gland Pharma IPO Detail
| IPO Open: | 09 November 2020. Monday |
| IPO Close: | 11 November 2020, Wednesday |
| Offer Size: | Fresh issue: Rs 1,250 crore; OFS: Rs 5194.6 crore to Rs 5229.5 crore |
| Face Value: | ₹ 1 Per Equity Share |
| Price Band: | ₹ 1490-1500 Per Share |
| Listing on: | NSE & BSE |
| Retail Portion: | 35 % |
| Equity: | 3.48 Crore Shares |
| Type of Issue | Fresh issue of equity shares aggregating to Rs. 1,250 crore and offer for sale of up to 3.48 crore equity shares |
Share Holding Pattern of Gland Pharma
Object of the Issue
| Objects | Amount Rs. Cr. |
|---|---|
| Funding incremental working capital requirements | 769.5 |
| Funding capital expenditure requirements | 168.0 |
| General Corporate Purpose | - |
| Total | - |
Shareholding Pattern
Valuation of Gland Pharma IPO
Gland is one of the fastest growing generic injectable-focused companies. Gland has extensive and vertically integrated injectables manufacturing capabilities with a consistent regulatory compliance track record. The company follows a diversified B2B-led model across markets globally, complemented by a targeted B2C model in India. The US markets account for 67% of the total sales as of FY2020, followed by a 17.7% share of Indian markets. Gland has extensive portfolio of complex products which are well supported by internal R&D, awaiting to be commercialised across markets. Gland has an experienced management team and is promoted by Shanghai Fosun Pharma. The B2B business constitutes around 96% of FY2020 sales. This coupled with focus on injectable space and strong compliance track record are key plus points for Gland. Gland’s financial performance over FY2018 to FY2020 is impressive. The revenues have grown by a sturdy 27.4% CAGR over FY2018-FY2020. The EBITDA margins have also improved to 36.3% in FY2020 as against 33% in FY2018, consequently the EBITDA has staged a 33.6% CAGR over the same time frame. The PAT has grown by a sturdy 55.2% CAGR over FY2018-FY2020. The RoE also has improved from 13.3% in FY2018 to 21.2% in FY2020.
At the IPO price band of Rs. 1490-1500, the offer is priced at 29.8x / 30x its FY2020 EPS (at its lower / Upper price band). The company is present in one of the fastest-growing generic injectables space, with an extensive vertical integration and follows a B2B model across markets. Gland is expanding its manufacturing footprint, has a strong pipeline of filed ANDAs and is also expanding its geographical presence in new markets. Looking at the strong domain expertise, a sturdy and consistent earnings track record and healthy return ratios, the future looks good.
Source :- Company DRHP
Gland Pharma Financials
About The Gland Pharma
Gland Pharma Limited (Gland) was established in Hyderabad in 1978. The company is a vertically integrated company with capabilities including internal research and development expertise, robust manufacturing capabilities, a strict quality assurance system, extensive regulatory experience and established marketing and distribution relationships. The company has expanded from 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. The company is focused on meeting diverse injectables needs with a stable supply of affordable and high-quality products.
Gland has an established a portfolio of injectable products across various therapeutic areas and delivery systems. It is present in sterile injectables, oncology and ophthalmic and focus on complex injectables, NCE-1s, First-to-File products and 505(b)(2) filings. The delivery systems include liquid vials, lyophilized vials, pre-filled syringes, ampoules, bags and drops. The company is also expanding 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. Gland has seven manufacturing facilities in India, comprising four finished formulations facilities with a total of 22 production lines and three API facilities. As on March 31, 2020, the finished formulations manufacturing capacity stood at approximately 755 million units per annum. The API facilities provide in-house manufacturing capabilities for making critical APIs for key products. Gland has a successful track record of operating a B2B model with leading pharmaceutical companies in the US and Rest of world using long-term development, licensing and manufacturing and supply agreements. Glands primary B2B model covers IP-led, technology transfer and contract manufacturing models, complemented by a B2C model in home market of India leveraging brand strength and sales network.
