Gland Pharma made a firm debut in the equity markets on Friday. The action was listed in ₹1710, a premium of 14% on its issue price of ₹1500 each.
Gland Pharma’s initial public offering (IPO) was open for subscription on November 9-11, with a price band of ₹1,490-1,500 per share. The issue to raise ₹Rs 6,480 crore were subscribed 2.06 times.
Gland Pharma’s IPO is the largest in the pharmaceutical sector so far. The IPO comprised the new issue and the offering for sale. The proceeds of the sale offer will be received by the selling shareholders. The net proceeds from the new issuance will be used to fund the following items that fund incremental working capital requirements, capital expenditures requirements, and general corporate purposes.
“With the benefits of being an integrated injectables / ophthalmic manufacturer and a combined B2B official, Gland offers a compelling proposition with its impeccable regulatory record and customer loyalty, plus a long-standing manufacturing pedigree, warranting an assessment. superior, ”said ICICI Securities.
Gland Pharma is one of the fastest growing generic injectables focused companies operating in more than 60 countries. The company generates 97% of its business-to-business (B2B) revenue through IP, technology transfer, and contract manufacturing. Gland Pharma has delivered consistent performance with 28% revenue growth supported by operating margin expansion to 39.5%, 37.2%, 34.9% in FY2018, FY2019 and FY2020 respectively, largely due to its injectables manufacturing capabilities. vertically integrated.
“On the valuation front, Gland Pharma is valued at an earnings price of 18.5 times the annual earnings per share (EPS) for fiscal year 21,” said Nirvi Ashar, analyst at Religare Broking.
Gland Pharma is a Hyderabad based company and one of the fastest growing generic injectables companies. One of the promoters, Shanghai Fosun Pharma, is a major global pharmaceutical company.
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