Following a stellar stock market debut, Gland Pharma Ltd IPO investors became 22 per cent richer in just two days. During the initial public issue, the company received a muted response from its investors, however, as of November 23, its stocks were trading 18 per cent higher, garnering demands from investors. After opening at around Rs 1,701, the stock rose to almost Rs 1820, with the issue price being Rs 1500.
The first Indian company with a Chinese promoter to go public and the 13th company to list this year, Gland Pharma products, used in critical care segment, are being sold in over 60 countries across five continents including the global superpowers like the USA and Europe. “With benefits of being an out-and-out integrated injectable/ophthal manufacturer and B2B functionary combined, Gland offers a compelling proposition with its unblemished regulatory track record and customer stickiness besides long-standing manufacturing pedigree, justifying premium valuation,” wrote ICICI Securities. The Hyderabad-based pharma company has around seven manufacturing facilities in India, including four formulations facilities and three pharmaceutical ingredient facilities.
On the other hand, some investment experts opine that a lot more awaits Gland Pharma IPO investors. In this regard, Chakri Lokapriya, CIO and MD, TCG said that since almost 50 per cent of the company’s revenue is coming from a few large clients, it poses a major risk. In addition to this, some also believe that its strong financials is also one of the major reasons investors overlooked the presence of its Chinese promoters. Gland Pharma, which has been in operations since 1978, is being owned by Singapore-based Fosun Pharma Industrial Pte. Ltd that itself has Chinese promoters.
