GreenSignal Bio Pharma to open IPO to raise Rs 116 cr

IPO will be held from November 9-11 and the company will offer 1.46 crore equity shares

The promoters of Chennai-based vaccine manufacturing firm GreenSignal Bio Pharma Ltd (GSBPL) are expected to dilute 38 per cent stake in the company in the Rs 116-crore intial public offering (IPO) to be open on Wednesday. The company, which is one of the few manufacturers of BCG vaccine globally, is expecting its sales to go up in future due to global approvals.

As part of the IPO, scheduled from November 9 to 11, the company will offer 1,45,79,560 equity shares of face value of Rs 10 each through an Offer for Sale by the promoters P Sundaraparipooranan and P Murali and Mallika Murali from the promoters' group along with the public shareholders R Srinivasan and Avon Cycles Ltd. The offer will constitute 38 per cent of the fully diluted post offer paid-up equity share capital of the company.

 

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The equity shares are being offered in the price band of Rs 76 to Rs 80 per equity share of face value of Rs 10 each. The shares will be offered to qualified institutional bidders, high networth individuals and retail invsetors as well as foreign investors and non resident Indians.

The company claims that it is one among the two manufacturers of BCG Vaccine, the other being Pune-based Serum Institute, in India. The vaccine is to provide protection against tuberculosis, mainly severe forms of childhood tuberculosis. It has also received pre-qualification approval from the World Health Organisation and is the lowest bidder for Unicef for supply of BCG vaccine in variou scountries. It also has a BCG-Onco, an immunotherapy medicine for treatment of urinary bladder carcinoma, Urovac.

It has firm order of 84 lakh vials to be executed in the next two years and it is currently exporting to around 14 countries, with a potential to increase exports to a total of 120 countries, said Murali, director of the company.

With a facility in Chennai to manufacture 10 million vials a year, the company is expecting 100 per cent capacity utilisation next year. It would look at expansion later and has around 34 acre of land with it in various locations. The company is also working on expanding its product range, he added.