Gland Pharma’s shares kicked-off trade with a 14 premium compared to the issue price on November 20 as the stock opened at Rs 1,710 on the National Stock Exchange against issue price of Rs 1,500, while it surged by 13.40 percent at Rs 1,701 in the opening on the Bombay Stock Exchange.
The share rallied 15.2 percent and traded at Rs 1,727.70 with a total of 29,51,584 equity shares on the National Stock Exchange as recorded at 10:10 am IST. On the BSE, it traded at Rs 1,728, up by 15.20 percent with a total of 1.19 lakh equity shares.
The listing was in line with the expectations, all thanks to the good response to the IPO by qualified institutional buyers and strong finances from a diversified revenue base besides a healthy flow of cash.
“The company has extensive and vertically integrated injectables manufacturing capabilities with a consistent regulatory compliance track record. Also, it has a track record of growth and profitability from a diversified revenue base with healthy cash flows. Hence, fundamentals of the company look strong,” Astha Jain, Senior Research Analyst at Hem Securities said.
Gland Pharma raised a total of Rs 6,480 crore via Initial Public Offering which included a fresh issue of Rs 1,250 crore and an offer for sale of Rs 5,230 crore by the promoter and selling shareholders.
The company will make use of the net fresh issue of funds for funding the working capital requirements, capital expenditure requirements and general corporate purposes.
Fosun Singapore and Shanghai Fosun Pharma are the promoters of Gland Pharma. Post issue, their shareholding reduced to 58 percent from the initial 74 percent.
Gland Pharma is one of the fastest-growing generic injectables-focused companies, developing products focused for the US citizens. The company sells products mainly under a business-to-business (B2B) model in over 60 countries globally and is Headquartered in Hyderabad in India.
