Gland Pharma has approved a $21 million investment in Gland Pharma USA Inc. to facilitate the acquisition of a 60% stake in Novelstar Pharma Inc., marking a strategic expansion into the United States market.

The board meeting held on October 1, 2026, authorized the capital infusion into Gland Pharma USA Inc., which is proposed to become a wholly owned subsidiary. Gland Pharma USA Inc. will utilize these funds to subscribe to 60% of the equity share capital of Novelstar Pharma Inc. Upon completion, Novelstar will become a step-down subsidiary of Gland Pharma.

Strategic Expansion in the United States

The investment is structured as cash consideration and is intended to facilitate business expansion in the United States. Novelstar Pharma Inc. is a newly incorporated entity in the US with no prior business operations or turnover. Its share capital post-acquisition stands at $35 million.

Gland Pharma USA Inc., incorporated in March 2022, currently operates as a wholly owned step-down subsidiary. Its turnover was nil in FY26, $87,342 in FY25, and $483,808 in FY24. The transaction is classified as a related party transaction but is exempt from certain approval requirements under Regulation 23(5)(b) of the Listing Regulations as it involves a wholly owned subsidiary whose accounts are consolidated.

Board Composition Changes

Concurrent with the investment approval, the board accepted the resignation of Wenjie Zhang, Non-Executive & Non-Independent Director, due to pre-occupations. Effective immediately, Xingli Wang was appointed as an Additional Director (Non-Executive & Non-Independent Director). Wang serves as President of Fosun Pharma and holds leadership roles in its Global R&D Center and innovative medicine division.

The appointment of Wang will be subject to member approval via postal ballot and e-voting within stipulated timelines. Following these changes, the composition of various board committees was realigned to comply with Listing Regulations.

What the Numbers Show

The structure of the Novelstar ownership reveals a significant promoter-linked interest. While Gland Pharma USA Inc. acquires 60%, Fosun Pharma USA Inc., a fellow subsidiary of the company’s promoter group, holds the remaining 40%. This indicates that the expansion vehicle is jointly controlled by entities within the broader Fosun ecosystem, aligning Gland Pharma’s US growth strategy closely with its parent group’s interests.

The indicative timeline for completing the acquisition of the 60% stake in Novelstar is by October 31, 2026.

Gland Pharma Limited saw a reduction in institutional holding as Mirae Asset Mutual Fund sold 57,842 shares in the open market on September 28, 2026. The disposal lowered the fund's equity stake from 2.99% to 2.95%.

The transaction was disclosed under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Mirae Asset Investment Managers (India) Private Limited confirmed the sale via a filing to the Bombay Stock Exchange on September 29, 2026.

Transaction details

The fund reduced its position through an open market sale, with no changes to the company's total share capital or diluted voting capital resulting from the trade. The following table outlines the shift in holdings:

What the numbers show

The reduction represents a marginal adjustment rather than a significant exit. The fund retains a substantial block of 4,872,191 shares, maintaining its status as a notable non-promoter holder. The dilution impact is minimal, with the stake against diluted share capital falling by only 0.03% to 2.92%, indicating the sale did not materially alter the ownership structure relative to potential convertible instruments.