Gland Pharma shares made a strong market debut on Friday (November 20). The shares opened for trading at Rs 1,701 on BSE against issue price of Rs 1,500, listing at a premium of 13.4 per cent. The stock surged as much as 23 per cent from issue price to hit an intraday high of Rs 1,850. The pharmaceutical company's initial public offer (IPO), which closed on November 11, was subscribed two times. As of 12:49 PM, Gland Pharma shares traded at 5.60 per cent higher at Rs 1,796.15 apiece on the BSE.
Gland Pharma's Rs 6,480 crore IPO had received a muted response from the investor's circle. It was subscribed by a mere 2.06 per cent, receiving bids for 6,21,55,670 shares as against the issue size of 3,02,37,879 shares. The shares were offered in the price band of Rs 1,490-1,500 per share. (Also Read: Gland Pharma IPO Oversubscribed On Final Day Of Subscription )
"Gland Pharma IPO had a strong listing at Rs. 1720 (Issue Price was Rs. 1500). 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. Retail participation was muted at the absolute issue price was higher at Rs 1500 and past few IPOs didn't have strong listing,'' said Hemang Jani, Head - equity strategy, broking & distribution, Motilal Oswal Financial Services Ltd
Gland Pharma IPO was the largest pharmaceutical public offering in the country. With today's stock market listing Gland Pharma's market capitalization surged to Rs 28,966 crore. In 2017, China's Fosun Pharma acquired a 74 per cent stake in the firm. Hence, it is the first Indian company, with Chinese parentage, to take the primary market route for funding requirements.
RECOMMENDED FOR YOU
POPULAR