ED asks Gland Pharma to transfer shares held by Raju to escrow account

Hyderabad, Nov 4 : Gland Pharma will transfer six million shares owned by companies promoted by Satyam Computers’ B. Ramalinga Raju and his kin to an escrow account on the direction of the Enforcement Directorate (ED), a top company official said on Wednesday.
The development comes ahead of Gland Pharma’s Initial Public Offer (IPO) announcement.
Srinivas Sadhu, MD and CEO of Gland Pharma, told reporters during a virtual press conference that they are following the directions of the ED. He clarified that these shares are not part of the IPO.
The ED had attached the shares held by Raju and his kin after multi-crore scam broke out in Satyam Computer Services Ltd in 2009. It had directed Gland Pharma not to transfer, dispose, remove, part with or otherwise deal with them in any manner until further instruction from it.
With the Hyderabad-based pharma company, controlled by Chinese pharmaceutical giant Shanghai Fosun Pharma, planning an IPO, the ED directed it to transfer the shares.
Gland Pharma on Wednesday announced that IPO to raise almost Rs 6,500 crore will open on November 9. This is one of the largest IPOs in India’s pharmaceutical sector. The firm has set a price band of Rs 1,490-1,500 per share (face value of Re 1).