One of the fastest-growing injectable-focused B2B companies, Gland Pharma, is set to debut after closing its public issue with 2.06 times subscription last week.
The company, after consultation with book running lead managers, has fixed the final issue price at Rs 1,500 per share.
Experts expect Gland Pharma to show a decent performance on debut due to its strong earnings trajectory, even though the issue received a tepid response from investors.
Qualified institutional investors helped the issue get fully subscribed as their reserved portion was subscribed 6.4 times, while the portion set aside for non-institutional investors witnessed a subscription of 51 percent and that of retail 24 percent.
Gland Pharma is expected to list at 10 percent or above premium to issue price, said an expert.
Backed by Chinese company Fosun Pharma, the firm registered a profit growth at a 55.2 percent CAGR and revenue at 27.4 percent CAGR, while EBITDA grew at a 33.6 percent CAGR during FY18-FY20. Over the year, its margin improved, at around 39 percent in FY20 & 48 percent during the June quarter.
It is a niche player in sterile injectables, oncology and ophthalmic solutions with focus on first-to-file, 505(b)(2) filings and NCE- 1s. Along with its partners Gland has 267 ANDA filings (101 owned) in the US as of Q1FY21, of which 215 were approved.
So far, the Pharma index surged 80 percent from its low point on March 23, given the huge demand for the sector due to the COVID-19 crisis.
Gland Pharma had opened its Rs 6,480 crore public issue for subscription during November 9-11, with a price band of Rs 1,490-1,500 per share.
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