Gland Pharma Rises 21% Over IPO Price On Stock Market Debut
Favipiravir, the antiviral medication being manufactured in Russia. Photographer: Andrey Rudakov/Bloomberg

Gland Pharma Rises 21% Over IPO Price On Stock Market Debut

Shares of Gland Pharma Ltd. soared on its market debut as investors piled in expecting to gain from the demand for its injectables.

Shares of the Hyderabad-based drugmaker listed at Rs 1,701 apiece, a 13% a premium to its issue price of Rs 1,500 apiece, according to data available on the exchanges. The stock closed at Rs 1,820, gaining 21.36% over the issue price.

That compares with a 24-115% premium on listing by recent debutants, including Mazagon Dock Shipbuilders Ltd., CAMS Ltd., Route Mobile Ltd., Happiest Minds Technologies Ltd. and Chemcon Specialty Chemicals Ltd. Angel Broking Ltd., UTI Asset Management Co. and Equitas Small Finance Bank Ltd., however, debuted at a 6-11% discount to their issue prices.

Gland Pharma’s initial public offering was subscribed 2.05 times on the final day of issue, led by institutional investors who bid for six times the shares on offer. Subscription of retail investors was 24%.

The offer comprised a fresh issue of equity shares worth Rs 1,250 crore, and a sale of 3.5 crore shares by promoters and other investors. Kotak Mahindra Capital Co. Ltd., Citigroup Global Markets India Pvt., Haitong Securities India Pvt. and Nomura Financial Advisory and Securities (India) Pvt. were lead managers to the issue.

The company has already allocated 1.30 crore equity shares at Rs 1,500 apiece to 70 anchor investors, raising Rs 1,944 crore ahead of the IPO.

Established in 1978, Gland Pharma is an injectable-focused drugmaker with a footprint across 60 countries, including markets such as the U.S., Europe, Canada, Australia and India. The company, which largely operates in the business-to-business segment, makes and markets complex injectables with drugmakers, including Sagent Pharmaceuticals Inc and Apotex Inc.

The U.S. is Gland Pharma’s largest market contributing more than 60% to its sales. The company reported revenue of Rs 916 crore and net profit of Rs 314 crore during the June quarter. For financial year 2020, revenue stood at Rs 2,772 crore and net profit at Rs 773 crore.

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