Gland Pharma's ₹ 6,480 crores initial public offering (IPO) had received a muted response; It was subscribed by a mere 2.06 percent, receiving bids for 6,21,55,670 shares as against the issue size of 3,02,37,879 shares.
Gland Pharma shares are likely to be listed on the bourses on November 20 i.e. Friday. Gland Pharma's ₹ 6,480 crores initial public offering (IPO) had received a muted response from the investor's community. It was subscribed by a mere 2.06 percent, receiving bids for 6,21,55,670 shares as against the issue size of 3,02,37,879 shares. The shares were offered in the price band of ₹ 1,490-1,500 per share.
The IPO consisted of a fresh issue of shares worth around ₹ 1,250 crores and an offer for sale (OFS) of more than 3.4 crore shares. The OFS included the sale of up to 1.94 crore shares by Fosun Pharma, 1 crore shares by Gland Celsus Bio Chemicals, 35.73 lakh shares by Empower Discretionary Trust, and 18.74 lakh shares by Nilay Discretionary Trust. The proceeds from the issue will be utilized for working capital requirements and general corporate purposes.
The public offering was open for bidding for three days, from November 9 and November 11.Gland Pharma IPO is the largest pharma public offer in the country. At the higher end of the price band of ₹ 1,490-1,500, the company has a market cap of ₹ 24,500 crores. Gland Pharma is the first Indian company, with Chinese parentage, to take the primary market route for its funding requirements.
Gland Pharma was founded by P V N Raju in Hyderabad in the year 1978. Fosun Pharma took a majority stake of 74 percent in the company in 2017.
Source: NDTV Profit.