IPO Analysis: Gland Pharma3.0 Rate this article:IPO Rating - Invest for listing gainsAbout the issueGland Pharma, a company promoted by Fosun Singapore and Shanghai Fosun Pharma, is tapping the primary capital market with its initial public offer (IPO) of equity shares of the face value of Re 1 each. After this issue, the promoter’s stake will come down to 58.36 per cent from 74 per cent that existed before this issue. The proceeds from the fresh issue of IPO will be used to fund the incremental working capital requirements (Rs 769.5 crore) of the company and capital expenditure (Rs 168 crore). It has grown from Rs 2,394 crore in FY18 to Rs 3,630 crore in FY20. Although the business model of the company is not comparable with any currently listed pharma company, other pharma companies of comparable revenue are available at less than five times market cap to sales.

Source: The North Africa Journal November 09, 2020 04:52 UTC