On BSE the scrip got listed at Rs 1,701, up 13.40 per cent.
The IPO, which was sold between November 9 and 11, was subscribed 2.06 times in a three-day bidding process, with the HNI and retail quotas undersubscribed. Analysts said being an out-and-out integrated injectable manufacturer and B2B functionary, Gland offers a compelling proposition with its unblemished regulatory track record and customer stickiness besides long-standing manufacturing pedigree.
They said higher revenue growth and improving profitability would make it a better choice over peers. Besides, the company’s expanding footprint in new geographies and investments in manufacturing capabilities and R&D is seen keeping the order pipeline healthy.
During FY18-20, Gland Pharma’s revenues have grown at a CAGR of 28 per cent while June quarter revenue rose 31 per cent. With no debt and a large cashpile, the company has strong net profit margins at 29.4 per cent in FY20, which improved from 19.8 per cent in FY18.
The IPO comprised a fresh issue of shares worth up to Rs 1,250 crore and an offer for sale of 3,48,63,635 shares. Gland Pharma shares were available at a premium of Rs 20 in the grey market during the subscription period. That premium rose to Rs 140-150 earlier this week.
There has also been a market buzz that some ultra HNIs and a big name on Dalal Street have made heavy bids for the IPO, which has also led to a surge in grey market interest in the stock. ETMarkets.com could not independently verify that piece of information.