Gland Pharma made its debut listing at a premium of 13.4 percent at Rs 1,701 on BSE on Friday when compared to its final issue price of Rs 1,500 per share. The fast-growing injectable-focused B2B company closed its IPO (initial public offering) with 2.06 times subscription last week.
Most brokerages had placed a "subscribe" review on the IPO, that was open from 9 to 11 November, considering its size, strong business, the bright outlook for the pharma sector and general optimism in the market, but received a tepid response from investors.
It was fully subscribed on the last day of bidding after qualified institutional investors' portion received good response, subscribing 6.4 times, while the portion set aside for non-institutional investors witnessed a subscription of 51 percent and that of retail 24 percent.
The Hyderabad-based company's largest stakeholder is China's Fosun Pharma which had acquired a 74 percent stake in the company in 2017. After the listing, Fosun's stake in the company falls to 58 percent.
Gland Pharma, which has seven manufacturing facilities in India, registered a profit growth at a 55.2 percent CAGR and revenue at 27.4 percent CAGR, while EBITDA grew at a 33.6 percent CAGR during FY18-FY20.