Gland Pharma IPO: 0.18 % subscription in the first day of bidding

Earlier, the company secured an exemption for its shares from SEBI. Gland Pharma’s 3.87 shares were locked by Enforcement Directorate (ED) for a period of one year. The lock-in of shares was imposed by ED in the Satyam Computers fraud case.

The initial public offering (IPO) of Gland Pharma has received 0.18 percent subscriptions on November 9. The Hyderabad-based injectable-focused drugmaker Gland Pharma has issued IPO for subscription on November 9 with an issue price band at Rs 1,490-1,500 per share.

“The offer is priced at P/E of around 18.52x on annualized EPS of the quarter ended June 2020. Gland Pharma is one of the biggest pharma IPOs. The company has a focus on complex injectables which has high entry barriers and strategic partnerships to penetrate new markets like China which can prove to be a lucrative opportunity for the company,” GEPL Capital said.

The public issue has received bids for 1.9 lakh equity shares against an IPO size of over 3.02 crore equity shares, the data available on the exchanges showed. The offering excludes shares worth Rs 1,943.86 crore that it has raised ahead of the bid.

Gland Pharma on Saturday announced that it had already raised Rs 1,943.86 crore from 70 anchor investors well ahead of its IPO that is scheduled to open on November 9. By allotting 12,959,089 shares to the investors, the company raised funds at the higher end of the price band at the rate of Rs 1,500 per share.

Earlier, the company secured an exemption for its shares from SEBI. Gland Pharma’s 3.87 shares were locked by Enforcement Directorate (ED) for a period of one year. The lock-in of shares was imposed by ED in the Satyam Computers fraud case.

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