Shares of Gland Pharma continued to fall on October 31, down 23% overall in three sessions, dealers said, amid concerns over a possible stake sale by its promoter entity, Fosun Pharmaceutical Industries Pte.

Fosun Pharma holds a 57.86% stake in Gland Pharma, which plays an important role in the field of injections exported to the United States, Europe and other regions.

Fosun Pharma’s ultimate beneficiary, China’s Fosun International, is facing severe financial pressure. Media reports that the company cannot raise new funds and may have to raise funds through asset sales.

Fosun International was recently further downgraded to “junk status” by a credit rating agency as the storm in China’s real estate market engulfed other sectors of the economy, according to Forbes magazine.

Gland Pharma’s September quarter earnings also did little to ease investor anxiety, given the company’s reported sharp drop in net profit. The company’s consolidated net profit fell 20% year-on-year to Rs 241 crore in the September quarter.

Revenue for the quarter unexpectedly fell 3% to Rs 1,044.4 crore due to a slump in business in India and the rest of the world.

Brokerage firm Jefferies India downgraded the stock amid renewed weakness in earnings performance. Jefferies downgraded it to “hold” and cut its target price by 21% to Rs 2,241.

The stock sell-off can be quantified by a 532% increase in the average stock trading volume over the previous three trading days (including today) compared to the average volume over the past three months. Shares of Gland Pharma were down 9.8% at Rs 1,700 on the National Stock Exchange at 11:05 am.