Everything you should know about Green Signal Bio pharma (GSBPL) & its IPO

Green Signal Bio Pharma was incorporated as a Private Limited Company on November 21, 2005 at Chennai under the Companies Act, 1956 and renown as “Green Signal Bio Pharma Private Limited”. The company motive is “Quality Health care for all” and providing the needed immunological at an economical cost to the needy. There are only four companies in the world who are certified by WHO for supplying UNICEF with BCG Vaccine for immunization against Tuberculosis. GSBPL is one of them and one of the two manufacturers and suppliers of BCG Vaccine in India.

Products of Green Signal Bio Pharma:

  • BCG Vaccine: BCG or Bacillus Calmette Guerin is a vaccine used for prevention of Tuberculosis(TB) in humans. In around 170 countries in the world, approximately 100 million children are vaccinated with BCG Vaccine. The BCG vaccine has contributed around 82.73 per cent of its revenues for the 12-month period ended March 31, 2016.
    BCG  UROVAC (BCG ONCO BP): Bacillus Calmette-Guerin (BCG) immunotherapy is widely accepted as the treatment for high grade Urinary Bladder Carcinoma. It is helpful in reducing the frequency of tumor reoccurring after transurethral resection. Besides it also helps to eliminate existing tumor. 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. 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.

Financial Details:
54 per cent of total revenues come from the domestic market, while the rest comes from international business. Last year the company started selling the vaccine to the other countries, which increased their sales and revenues. It sells its BCG vaccine in 17 countries.
The BCG vaccine has contributed around 82.73 per cent of the revenues for the financial year ended March 31, 2016. For the year 2015-16, the company had posted total revenues of Rs 20.49 crore with profit after tax of Rs 5.30 crore.

Key People:
Chairman: Mr. N. Gopalaswamy
Managing Director: Dr. P. Murali
Executive Director: Mr. E. S. Chandrasekaran
Director: Ms. Lakshmi V Iyer
Director: Mr. P. Perumalswamy

Key Shareholders:
Mr.P.Sundaraparipooranan is one of the promoters and the major shareholder of the Company who holds 56% of equity shares.
Dr. P.Murali is one of the Promoters of the Company and holds 23% equity shares.
Mrs.M.Mallika (wife of P Murali) holds 4% equity shares.

Other shareholders:

  • Avon Cycles Ltd
  • R Srinivasan

1. Green Signal Bio Pharma Ltd. is the manufacturer of BCG vaccine for protection against tuberculosis. In 2015, 24 million children were vaccinated below the age of one.
2. The company is one of the only two manufacturers and suppliers of BCG vaccines in India.
3. GSBPL is one of the four companies globally that have been prequalified by World Health Organisation (WHO) to supply the BCG (Bacillus Calmette-Guerin) vaccines, which are given away to babies to protect them from severe tuberculosis.
4. They supply to UNICEF. It has successfully bagged a three-year supply contract from UNICEF , to supply BCG vaccines.
5. It has been supplying BCG vaccines to the Union Health Ministry also. GSBPL is supplying to Ministry of Health & Family Welfare (Vaccine Procurement Cell), Government of India under Universal Immunization Programme (UIP) from 2010 onwards to till date.
6. They also supply the BCG vaccine to Indonesia and Nepal. These countries don’t fall under the ambit of UNICEF.
7. The company has order in line of 84 lakh vials which it will be undertaking in the next two years.
8. It exports to 17 countries.

Overview of Pharma Industry:
Indian pharmaceutical sector is the most booming and burgeoning sector in the country’s economy currently. It accounts for about 2.6 percent of the global pharmaceutical industry in terms of value and 11 per cent in terms of its volume. It is expected to grow at a Compound Annual Growth Rate (CAGR) of 15.96 percent to US$ 55 billion by 2020 from US$ 20 billion in 2015. The Indian pharmaceutical market size is expected to grow to US$ 90 billion by 2025, which will be the resultant of urbanization, rising healthcare insurance, fall in death rates and increase in average life expectancy. India has also maintained its lead over China in pharmaceutical exports with a year-on-year growth of 11.76 per cent to US$ 12.93 billion in FY 2015-16. The Government of India has planned to set up a US$ 640 million venture capital fund which is meant to boost drug discovery, research and development and to strengthen the infrastructure of the pharmaceutical industry.
As of now, India has turned to be a final destination for vaccine Research and Development, Manufacturing. It is due to its cost efficient market here along with lower production cost in comparison to US and European markets. GSBPL is all set to take the giant leap of stepping up in the big league of vaccine manufacturing. India makes upto 20% of global exports in generics, which makes it the largest provider of generic medicines globally. India has allowed 100% Foreign Direct Investment (FDI) under the automatic route for greenfield pharma. 100% FDI is allowed under the government route for brownfield pharma in up to 74% FDI is under automatic route and beyond 74% is under government approval route.

Issue Of IPO:

Issue opening date: 9-11-2016
Issue closing date: 11-11-2016
Lot size: 175 shares (in multiple of 175)
Price band: Rs. 76 to Rs. 80

Promoters of GreenSignal Bio Pharma Ltd. (GSBPL), have taken a decision to dilute their shareholdings in the company through an offer-for-sale. N. Gopalaswami, the company’s head as well as former Chief Election Commissioner of India, has filed the draft red herring prospectus(DRHP) with the Securities and Exchange Board of India (SEBI).
No. Of Shares: 1,45,79,560 shares of face value of Rs.10 each.
This will dilute the stake of the promoters by up to 38 percent of their shareholdings to qualified institutional bidders, retail investors in India along with high net worth individuals as well as eligible foreign institutional investors(FIIs), foreign portfolio investors and NRIs.
Public sector bank, Indian Overseas Bank will serve to be its lead manager and its global coordinator.
Bigshare Services will act as the registrar for this purpose. BIGSHARE was incorporated on February 11, 1994 as a “Private Limited Company” with Registrar of Companies, Mumbai, Maharashtra. The main objective of the company is to provide financial services in the Capital Market.

Utilization of Fund:
⦁ Enhancing the company’s visibility.
⦁ Improving the Brand image.
⦁ Providing liquidity to the existing shareholders.

Peers And Competitors:
Serum Institute of India Pvt. Ltd. is the biggest player in the market of vaccine manufacturing. It is world’s largest vaccine manufacturer by the number of doses produced and sold globally (more than 1.3 billion doses). The vaccine list includes Polio vaccine as well as R-Hepatitis B, Diphtheria, Measles, Tetanus, Pertussis, BCG, Mumps, Hib and Rubella vaccines.
Vaccines manufactured by the Serum Institute are recognized by the World Health Organization, Geneva. The vaccine manufactured is used in various immunization programs by 142 countries globally, which tends to save millions of lives throughout the world. It is said that approximately 67% of the children across the world receive at least one vaccine made by Serum Institute of India. The company is ranked as India’s No. 1 biotechnology company, which specializes in manufacturing lifesaving biologicals like vaccines for various fatal diseases and other medical specialties.

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