Fosun-backed Gland Pharma’s shares make strong market debut in India

The building of the Bombay Stock Exchange in Mumbai. Credit: Wikimedia Commons

Gland Pharma shares made a strong debut on BSE and NSE today. Its shares rose to as much as 1,850 on BSE, up 23% compared to issue price of 1,500. The pharma company’s initial public offer (IPO), which closed on November 11, was subscribed two times.

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.

Kotak Mahindra Capital Company, Citigroup Global Markets India, Haitong Securities India Private and Nomura Financial Advisory and Securities (India) managed the offer.

The article was first published on livemint.com.

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.