As part of the IPO, Green Signal Bio Pharma Ltd Red Herring Prospectus has been approved by the SEBI recently. The Company was incorporated as Green Signal Bio Pharma Private Limited at Chennai on November 21, 2005 under the provisions of the Companies Act, 1956. Name of the Company was then changed to Green Signal Bio Pharma Private Limited with effect from April 21, 2016. Subsequently, the Company was converted into a public limited company with effect from May 12, 2016 under the provisions of Companies Act, 2013 and its name was changed to Green Signal Bio Pharma Limited. The Red Herring Prospectus was dated 13th October. Also see the RHP of Majestic Research Services.
Red Herring Prospectus of Green Signal Bio Pharma IPO
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Related Party Transaction entered by Green Signal Bio Pharma IPO as mentioned in the Red Herring Prospectus:
We have entered into certain transactions with Mr. P. Sundarparipooranan who is Promoter of our Company and may continue to do so in future. These transactions entered into with our Promoter typically relate to payment of rent for use of property.
Our Company has entered into lease agreement dated April 29, 2016 and rental agreement dated April 1, 2016 with Mr. P. Sundarparipooranan and has agreed to pay the following considerations to Mr. P Sundarparipooranan.
Apart from the above, our Company does not pay any amount directly or indirectly to any of our Promoters, their relatives or group entities including by way of remuneration, royalty, rent, using the intellectual property rights, under any material agreements etc.
There can be no assurance that we would not have achieved more favourable commercial terms with other parties. Furthermore, we may enter into related party transactions in future, and such transactions may potentially involve conflict of interests.
There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on our results of operations and financial condition. For more information see “Related Party Transactions‖ on page 130 of this Red Herring Prospectus.
Negative Cash Flows of Green Signal Bio Pharma as mentioned in the IPO Red Herring Prospectus
Our Company had negative cash flow in two out of last five financial years. We cannot assure that our company will not have such negative cash flows again in the future.
Our cash flows were negative for Financial Year ended 2014 and 2013 respectively and stood at Rs.(0.61 lacs) and Rs.(3.10 lacs) respectively due to increased capital expenditure. However, our cash flow again turned positive since Financial Year 2015 and 2016.
Also, for period ended June 30, 2016 cash flow was negative and stood at Rs.(117.81 lacs) predominantly due to reduction in working capital outstanding and increase in sundry debtors.
However, we cannot assure you that we will not have negative cash flows in future. Negative cash flows may hamper our business and operations.
Green Signal Bio Pharma Promoters Interest form the IPO Red Herring Prospectus
Except as disclosed in this Red Herring Prospectus, our Promoters are interested in our Company to the extent of their respective shareholding, the dividends received by them on such shareholding, and the remuneration/commission received by some of our Promoters who are Directors on the Board of our Company or are employed by our Company as the case may be.
For details of our Promoters‘ shareholding in our Company, please refer to – Capital Structure-Build-up of Promoters’ Shareholding, Promoters’ contribution and Lock-in‖ on page 50. Our Promoter, Dr. P. Murali, is also interested to the extent of being a Director on our Board, as well as any remuneration and reimbursement of expenses payable to him.
Except as disclosed above, our Promoters confirm that they have no interest in any property acquired by our Company during the two years immediately preceding the date of this Red Herring Prospectus or in any transaction in acquisition of land, construction of building or supply of machinery
Our Promoters are not related to any sundry debtors of our Company as on June 30, 2016.
- 1 Red Herring Prospectus of Green Signal Bio Pharma IPO
- 2 Related Party Transaction entered by Green Signal Bio Pharma IPO as mentioned in the Red Herring Prospectus:
- 3 Negative Cash Flows of Green Signal Bio Pharma as mentioned in the IPO Red Herring Prospectus
- 4 Green Signal Bio Pharma Promoters Interest form the IPO Red Herring Prospectus