Gland Pharma Shares Rise over 20 Percent on Debut Day, Reach Rs 1,850 against Rs 1,500 Issue Price
Gland Pharma logo
Gland Pharma shares received an overwhelming response from investors on their first day on Friday as they rose up 23 per cent when compared to the issue price of Rs 1,500. The company’s share in the intraday trade so far has hit a high of Rs 1,850 on the BSE.
The shares were listed at Rs 1,710 apiece on the NSE and Rs 1,701 on the BSE. According to The Indian Express, more than 77.30 lakh shares have exchanged hands on the NSE and 5.63 lakh stocks on the BSE.
Gland Pharma on November 9 launched its initial public offer (IPO) for subscription. On its closing day on November 11, the IPO was subscribed two times.
The Rs 6,479.5-crore initial share-sale attracted bids for 6,21,55,670 shares as against 3,02,37,879 on offer. The shares reserved for qualified institutional buyers (QIBs) were subscribed 6.40 times, while that for non-institutional investors and retail individual investors received 51 per cent and 24 per cent bids.
Gland Pharma’s public issue consisted of a fresh issue of Rs 1,250 crore and an offer for sale of over 3.48 crore equity shares. Price range for the IPO was fixed at Rs 1,490-1,500 per share.
Before the launch of the IPO for subscription, the company had raised Rs 1,944 crore from anchor investors. The shares which were offered earlier this month included that of both promoters and selling shareholders. Of the total stocks, 1.9 crore shares were of Fosun Pharma Industrial Pte and one crore shares of Gland Celsus Bio Chemicals. The IPO also had shares of Empower Discretionary Trust and Nilay Discretionary Trust. Empower Discretionary Trust offered 35.73 lakh shares, while Nilay Discretionary Trust offloaded 18.45 lakh shares.
Gland Pharma is a Hyderabad-based company and it is backed by China's Fosun Pharma. The amount received from the fresh issue of shares was utilised for capital expenditure and general corporate purposes and working capital, as per the draft papers.