InvestorQ : Can you give me a quick update on what to do with the Gland Pharma IPO? Should I apply?
vaishnavi mhatre made post

Can you give me a quick update on what to do with the Gland Pharma IPO? Should I apply?

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vidhya Laxmi answered.
3 weeks ago
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This week also marks one of the largest IPOs by an Indian pharma company. Gland Pharma’s Rs.6,500 crore IPO opens for subscription on November 09 and it will remain open for investors till November 11 with the IPO priced at Rs.1490-1500 bidding range.

The investment lot for the IPO is in lots of 10 shares each and retail investors can buy a maximum of 13 lots under the retail category within the prescribed limit of Rs200,000. Retail will have a 35% reservation while QIBs will have 50% and HNIs 15%.

Gland Pharma is owned by Fosun Group of China and hence the stock had elicited a lot of interest in the last few months due to the government aversion to any investment from China. Fosun of China had actually acquired the 73% stake from PE investor, KKR.

Out of the total issue size of Rs.6500 crore, nearly Rs.1250 crore will be by way of fresh issue while the rest of the IPO will be via offer for sale wherein the Chinese promoters and the promoting entrepreneurs will seek partial stake exit in the IPO.

Late last week, the company had got Rs.1944 crore in commitments from 70 anchor investors, promising good demand from QIPs. This had been done at the upper end of the band at Rs.1500 per share. Analysts are positive about the business prospects of its B2B franchise but wary of valuations.

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