Chennai-based GreenSignal Bio Pharma is in the process of coming out with an Intial Public Offer (IPO), to improve liquidity and enhance the company's visibility and brand image among its existing and potential customers. The firm's existing shareholders, including promoters, will sell around 1,45,79,560 equity shares at a face value of Rs 10 each, according to the Draft Red Herring Prospectus (DRHP) issued today.
The equity shares will be offered by the company's promoters P Sundaraparipooranan and P Murali along with other shareholders including Avon Cycles Ltd, R Srinivasan and and Mallika Murali. The company expects to raise between Rs 86 crore and Rs 120 crore through the issue.
GreenSignal currently has two products -- the BCG vaccine for preventing tuberculosis and the BCG-ONCO for immunotherapy. The latter is used in the treatment of urinary bladder cancer. The BCG vaccine contributed around 82.73 per cent of its revenues for the 12-month period ended March 31, 2016.
The company produces the BCG-ONCO immunotherapy vaccine under the registered name of 'Urovac' and has entered into a sales and distribution agreement with Cadila Healthcare Ltd for five years and the same is expiring in June 2016. Under this contract, Cadila Healthcare Ltd shall market its product BCG-ONCO for Immunotherapy under its own brand name, 'Oncovac' in the domestic market on an exclusive basis.
"There are only a few manufacturers who are into manufacturing BCG vaccine and there is a huge demand. Last year we have started exporting the vaccine to other countries, which increased our sales," said P Murali, director, GreenSignal Bio Pharma Ltd. The company, which has utilised around 60 per cent of the existing manufacturing plant, is expected to 100 per cent capacity utilisation in next two years. It has also bagged a three year supply contract from Unicef.
There is a huge market for BCG vaccine and the exports, which brings in three times the Indian price for the vaccine, is expected to grow, said Yogaish C Jain, general manager and CFO of Indian Overseas Bank. IOB is the Global Co-ordinator and Book Running Lead Manager to the offer.
The objects of the Offer are to achieve the benefits of listing the Equity Shares on the BSE and the NSE and to carry out the sale of up to 14,579,560 equity shares by the selling shareholders. Apart from enhancing the company's visibility and brand image and providing liquidity to the existing shareholders, the listing of the equity shares will also provide a public market for the equity shares in India, said the company.
"Our company will not receive any proceeds of the Offer and all the proceeds will go to the selling shareholders," it added.