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Home / Business News / Gland Pharma makes a stellar market debut

Gland Pharma makes a stellar market debut

China’s Shanghai Fosun Pharma acquired a 74% stake in Gland Pharma in 2017 for more than $1.1 billion, in the largest acquisition of an Indian company by a Chinese firm.

business Updated: Nov 21, 2020, 03:30 IST
Nasrin Sultana
Nasrin Sultana
After opening at ₹1,710, a 14% premium to the issue price of ₹1,500, the stock rose further to close at ₹1,828, a 21.86% gain from the issue price.
After opening at ₹1,710, a 14% premium to the issue price of ₹1,500, the stock rose further to close at ₹1,828, a 21.86% gain from the issue price. (PTI Photo)

Gland Pharma Ltd, the first Indian company with a Chinese promoter to go public, made a robust debut on the stock markets on Friday, with its shares closing nearly 22% above issue price.

After opening at ₹1,710, a 14% premium to the issue price of ₹1,500, the stock rose further to close at ₹1,828, a 21.86% gain from the issue price.

China’s Shanghai Fosun Pharma acquired a 74% stake in Gland Pharma in 2017 for more than $1.1 billion, in the largest acquisition of an Indian company by a Chinese firm.

Gland Pharma’s ₹6,480 crore IPO, the biggest in India’s pharmaceutical sector, was open for subscription from November 9 to 11 with a price band of ₹1,490-1,500. The issue was subscribed 2.06 times. Proceeds from the issue will be used to fund incremental working capital and capital expenditure requirements as well as for general corporate purposes. “On valuation front, Gland Pharma is valued at a price to earnings of 18.5 times FY21 annualised earnings per share (EPS),” said Nirvi Ashar, analyst, Religare Broking.

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