Greensignal Bio Pharma to Go For Intial Public Offer

Chennai-based, GreenSignal Bio Pharma Ltd, Vaccine manufacturing firm is in the process of coming out with an Intial Public Offer (IPO). It has set the price band at Rs76-80 per equity for its IPO via which it plans to raise around Rs112 crore, according to the Draft Red Herring Prospectus (DRHP) issued. The 100 per cent book building issue will commence on 9 November and will close on 11 November. The equity shares are suggested to be listed on both BSE and NSE.

The company has decided to enter the capital market with its initial public offering of 1,45,79,560 equity shares of face value of Rs 10 each through an offer for sale by promoter selling shareholders, namely P Sundaraparipooranan and P Murali, promoter’s group selling shareholder include Mallika Murali and public selling shareholders R Srinivasan and Avon Cycles Ltd.

Objective

The objects of the offer are to attain the benefits of listing the Equity Shares on both BSE and the NSE and to carry out the sale of up to 14,579,560 equity shares. Other than upgrading the company’s visibility and brand image and providing liquidity to the current shareholders, the listing of the equity shares will also provide a public market for the equity shares in India, as per the company.

AboutGreenSignal

The firm is involved in the production of BCG vaccine, given for protection against tuberculosis, mainly severe forms of childhood tuberculosis.

The global demand for BCG vaccines is anticipated at around 280 million doses annually, with the highest requirement coming from India. The total shortfall for BCG vaccination is seen at nearly 30 million doses annually as per GSBPL managing director, P Murali.

The firm is one of the four companies worldwide who have been WHO-prequalified in order to supply the BCG vaccine to UNICEF. Currently the firm manufactures two products which include BCG vaccine for immunization against Tuberculosis and BCG-ONCO for Immunotherapy (Freeze Dried) BP for the treatment of urinary bladder Carcinoma.

The company’s major domestic client is the ministry of health & family welfare and overseas client is UNICEF. The company has a firm order worth 84 lakhs vials to be executed in the years to come. Furthermore, GSBPL also exports products to 17 countries either directly through UNICEF or indirectly, through supply, distribution and other arrangements.

The company reported revenues of Rs. 20.49 crore for the year ended 31 March 2016 up from Rs. 6.6 crore in the last fiscal year. For the year ended 31 March 2016, the company clocked a net profit of Rs. 5.30 crore versus the previous year’s loss of Rs. 21 lakh. The company had faced losses in the three financial years prior to 31 March 2015.

Indian Overseas Bank is the book lead running manager (BLRMS) for the issue.

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