Deal Closed | Gland Pharma Limited | Proposed IPO

Khaitan & Co. Aug 11, 2020

The details of the deal are:

Sector: Pharmaceuticals

Announcement Date: 10th July 2020 (DRHP filing date)

Completiton date: Ongoing transaction. The Draft Red Herring Prospectus was filed by the Company with SEBI on July 10, 2020 and the completion of the transaction is subject to the Company filing the Red Herring Prospectus and Prospectus with SEBI and other Indian regulators.

Name of the client: Fosun Pharma and Gland Pharma Limited and Gland Pharma Limited

Shanghai Fosun Pharmaceutical (Group) Co., Ltd. is a leading healthcare group in China. The company has established international R&D centers for excellence in areas such as innovative small molecule drugs, high-value generic drugs, biologics, and cell-therapy.

Gland Pharma Limited, a subsidiary of Fosun Pharma, manufactures small volume parenterals. It offers injectables, including vials, ampoules, pre-filled syringes, lyophilized vials, dry powders, infusions, and ophthalmic solutions.

Deal description: Acted as legal counsel as to Indian law to Shanghai Fosun Pharmaceutical (Group) Co., Ltd (“Fosun Pharma”) and Fosun Pharma Industrial Pte. Ltd, the promoters of Gland Pharma Limited, in the filing of the Draft Red Herring Prospectus for the proposed initial public offering of Gland Pharma Limited comprising of a Fresh Issue aggregating up to INR 12,500 million and an offer for sale of up to 34,863,635 Equity Shares by the existing shareholders. Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, Haitong Securities India Private Limited and Nomura Financial Advisory and Securities (India) Private Limited were the book running lead managers to the Issue.

Deal amount: Up to INR 58,000 million (Up to USD 780 million)

Role of Khaitan & Co: Legal Counsel to the Promoters as to Indian Law

Other legal advisors if any, with names of lead lawyers: Legal Counsel to the Company and the Other Selling Shareholders as to Indian Law: Cyril Amarchand Mangaldas;

Legal Counsel to the BRLMs as to Indian Law: S&R Associates

International Legal Counsel to the BRLMs: Herbert Smith Freehills LLP

Unique feature of transaction:

Upon consummation, this IPO will be the first Indian company with a Chinese parent to list its equity shares on the Indian stock exchanges;
The transaction saw the successful receipt of a “PN-15” regulatory approval from the Stock Exchange of Hong Kong Limited;
Khaitan & Co represented the Fosun Group on the transaction, being one of the largest Chinese pharmaceutical chains globally.