Chinese-backed drug firm Gland Pharma has received approval from market regulator SEBI to launch an initial public offering (IPO) worth Rs 6,000 crore, Moneycontrol reported quoting sources. The company had filed its papers in July 2020.

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The Hyderabad-based drugmaker would be the first company with Chinese parentage to launch an IPO in the Indian equity market, and comes amid a downturn in India-China relations following the Galwan clash.

The report said Gland could issue an offer for sale for 34,863,635 equity shares by the existing shareholders of the company.

Most of the IPO proceeds will be used for capex and working capital for its Indian operations. The offer is likely to comprise a fresh issue aggregating up to Rs 1,250 crore and an offer for sale of up to Rs 4,750 crore.

Citi, Kotak Mahindra Capital, Nomura, and Haitong Securities are the merchant bankers working on the issue.

Fosun Pharma and Fosun International are the two biggest shareholders in Gland Pharma as they hold 74 percent equity interest in the company indirectly, a valuation of about $1.09 billion.