After making a stellar debut on Friday, shares of Gland Pharma on Monday were locked in 20 per cent upper circuit at Rs 2184 per share. On Friday, the shares settled 21 per cent higher at Rs 1,820, against its issue price of Rs 1,500.
Gland Pharma’s initial public offering (IPO) was the largest ever public issue by a pharmaceutical firm in India. It is the first company in India with Chinese parent to list on bourses. During the subscription period only Qualified Institutional Buyers (QIB) showed interest in the offering by oversubscribing their portion while retail investors and Non-Institutional Investors (NII) stayed away from it.
For FY18-20, the company’s revenue had grown at 27 per cent CAGR while profit after tax (PAT) grew by 55 per cent CAGR. In FY20, it reported a PAT of Rs 773 crore on revenues of Rs 2,633 crore with EBITDA margin of 36 per cent. Top five customers accounted for 49 per cent while two-third of its revenue comes from the US as of FY20.
Fosun Pharma backed Gland Pharma has raised Rs 1,944 crore from anchor investors by selling shares at Rs 1500 per share. Government of Singapore, Goldman Sachs, Morgan Stanley, Nomura, SBI Mutual Fund, SBI Life Insurance Company, Axis Mutual Fund and Fidelity were among the anchor investors.