(Yicai Global) Nov. 4 -- Chinese healthcare titan Fosun Pharmaceutical Group is planning to take its Indian drug-making unit public on the National Stock Exchange of India and the Bombay Stock Exchange.
The amount sought and the purpose of the money raised will be decided by the directors and shareholders of the unit, Gland Pharma, Shanghai-based Fosun Pharma said in a statement on Nov. 1. Fosun Pharma acquired 74 percent of the company in 2016 for around USD1.1 billion.
Founded in 1978, Hyderabad-based Gland Pharma develops and makes small molecule injectable generic drugs. It was the first producer of pharmaceutical liquid injectable products in India to be approved by the US Food and Drug Administration and has secured Good Manufacturing Practices Certification from global markets. Its operating income comes mainly from the US and Europe.
The initial public offering of shares will help Gland Pharma further develop its local market, improve governance and capital structure as well as strengthen its advantages in the field, the statement said.
Gland Pharma will list new and existing shares. The new shares will not exceed 5 percent of its total stock before market debut, while the tranche of current shares will account for no more than 22.5 percent. Fosun Pharma is unlikely to sell more than 12.5 percent of the Indian firm's equity before the listing, it said.