Chinese firm backed Gland Pharma shines bright in Indian stock market

 

Backed by China's Fosun Pharma, Gland Pharma made a stunning debut on its IPO that surged over as high as 23%. The Hyderabad-based pharma company develops, manufactures, and markets complex injectables. Amid this ongoing tension between India and China, Gland Pharma's success comes with a massive significance for the investors. 

• What's the story?

Gland Pharma, a pharma company specialized in injectables is backed by Chinese firm Fosun Pharma. The company made its initial public offering (IPO) and received a massive response. Being a consistent performer in its niche, Gland Pharma came up with an issue price of 1500 INR per share which by no means can be considered on the lower side. For its offer of ₹6,479.5-crore initial share-sale received bids for 6,21,55,670 shares as against 3,02,37,879 shares on offer, translating into 2.06 times subscription.The category reserved for qualified institutional buyers (QIBs) was subscribed 6.40 times, non-institutional investors 51% and retail individual investors 24%. 

Gland Pharma was founded by P V N Raju in 1978 and Fosun Pharma acquired 74% stake in the company in 2017. Gland Pharma is first of its kind to go for an IPO with a Chinese backer. As the situation between the border nations is not stable, Gland Pharma's success definitely brings joy to the face of foreign investors specifically Chinese investors. Indian startup ecosystem has lately seen a huge participation of Chinese investors to fuel their dream journey and with Gland pharmas success these companies are definitely going to have better sleep at night.   

• What's next ? 

With Gland Pharma's success,  Chinese investors may again turn bullish on the Indian market and back to back IPO hits on the Indian stock market might continue. To go ahead with this rally we suggest you stay updated with the upcoming IPOs of RaitTel, Burger King India, Kalyan Jewellers, etc.