Fosun-backed Gland Pharmas Shares Make Strong Market Debut In India

As of 11:50 am, Gland Pharma shares were trading at ₹1,781.50.

The company’s ₹6,479.5-crore initial share-sale received bids for 6,21,55,670 shares as against 3,02,37,879 shares on offer, translating into 2.06 times subscription.

“Gland Pharma IPO had a strong listing. It is a niche player, focused on injectables. It has proven track record of growth and profitability along with a consistent regulatory compliance history. It has never received a negative USFDA report. The future prospects are bright as it has 267 ANDA filings of which 215 are approved. Pharma sector is in focus and given its strong fundamentals and promising future, there is lot of investment interest,” said Gland Pharma IPO by Mr Hemang Jani, Head – Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services.

The category reserved for qualified institutional buyers (QIBs) was subscribed 6.40 times, non-institutional investors 51% and retail individual investors 24%.

The initial public offer was of a fresh issue of ₹1,250 crore and an offer for sale of 3,48,63,635 shares.

Price range for Gland Pharma’s initial public offer (IPO) was fixed at ₹1,490-1,500 per share. Ahead of the IPO, Gland Pharma had raised ₹1,944 crore from anchor investors.

The Hyderabad-based company, backed by China’s Fosun Pharma, develops, manufactures and markets complex injectables.

The proceeds from the fresh issue of shares will be utilised for working capital, capital expenditure and general corporate purposes, as per the draft papers.

Gland Pharma was founded by P V N Raju in 1978 and Fosun Pharma acquired 74% stake in the company in 2017.