Board approves USD 21 million investment in US arm to take 60% of Novelstar Pharma; board changes

Board approved investing USD 21 million in Gland Pharma USA Inc., proposed to be a wholly-owned subsidiary.

Thu 1 Oct 2026

Investment Amount

USD 21 million

Equity Stake in Novelstar

60%

Promoter Affiliate Stake in Novelstar

40%

Completion Timeline

October 31, 2026

Gland USA Share Capital After Investment

USD 21,500,000

What the board approved

At its meeting on October 01, 2026 (15:00 to 15:30 Hrs. IST), the board approved an investment of USD 21,000,000 by the company in Gland Pharma USA Inc. (Gland USA), proposed to be a wholly-owned subsidiary. Gland USA will use these funds to subscribe to 60% of the equity share capital of Novelstar Pharma Inc., a newly incorporated US company.

Structure of the deal

• Novelstar will become a subsidiary of Gland USA and a step-down subsidiary of Gland Pharma.
• Fosun Pharma USA Inc., a wholly-owned subsidiary of Shanghai Fosun Pharmaceutical (Group) Co. Ltd and a fellow subsidiary of promoter Fosun Pharma Industrial Pte. Ltd, will own 40% of Novelstar's equity share capital.
• Share capital of Novelstar at incorporation: NIL; post-acquisition: USD 35,000,000. Turnover: NIL.
• The Novelstar transaction is stated not to be a related party transaction.

Gland USA details

• Share capital before the investment: USD 500,000; after: USD 21,500,000.
• Incorporated March 07, 2022. Turnover: FY26 NIL, FY25 USD 87,342, FY24 USD 483,808.
• The investment into Gland USA is a related party transaction done at arm's length, exempt under Regulation 23(5)(b) as it is between the company and its wholly owned subsidiary; it has prior approval of the Audit Committee and the Board.
• Consideration is cash; no governmental or regulatory approvals stated as applicable; there is no change in the company's shareholding percentage in Gland USA.
• Indicative completion: by October 31, 2026.

Stated purpose

The investment is intended to facilitate expansion of the company's business in the United States of America. Novelstar is in the pharmaceutical industry.

Board changes

• Mr. Wenjie Zhang, Non-Executive & Non-Independent Director, resigned due to his pre-occupations; the resignation was accepted with immediate effect.
• Mr. Xingli Wang was appointed Additional Director (Non-Executive & Non-Independent) with effect from October 01, 2026. Member approval under Regulation 17(1C) will be sought through postal ballot and e-voting within the stipulated timelines.
• Committees of the Board have been realigned with effect from October 01, 2026.

How investors may read it

This marks a funded push into the US market through a newly formed joint entity in which the promoter group's US affiliate holds the minority stake, alongside a change in non-executive board composition.

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