- The shares of Gland Pharma were trading 18% higher at ₹2,143 apiece on November 23 at 10:20 am.
- The IPO has made its initial investors $1.05 billion richer in the past two days.
- The experts believe that its strong financials have been the reason investors ignored its Chinese promoter.
- While you may have missed the listing gains, the investment experts believe there are a lot more lies ahead for the Gland Pharma investors.
The shares of Gland pharma are seeing a stellar demand from investors post the IPO listing. The IPO has made its initial investors 22% richer in the past two days — gaining over ₹7748 crore ($1.05 billion) since its debut to the current market capitalisation of ₹35,669 crore.
Despite the muted response from investors during the initial public issue, the shares listed at a premium of 13% and closed 21% higher on the first day of the debut. And, the stocks were trading 18% higher at ₹2,143 apiece on November 23 at 10:20 am.
This was the 13th company to list this year and the largest ever a public issue in the Indian pharma industry.
The party may not be over yet!
While you may have missed the listing gains, the investment experts believe there are a lot more lies ahead for the Gland Pharma investors.
Chakri Lokapriya, CIO & MD, TCG AMC told Economic Times, that “the company’s profitability and growth are very reasonable. It has 45-50% of its revenue coming from a few large clients, and that does present some kind of concentration risk. But just the breadth of the business allows the company to continue to do well. I think there is still upside from the current levels for Gland Pharma.”
The experts believe that its strong financials have been the reason investors ignored its Chinese promoter. “The stock is trading above its midcap pharma peers but higher valuations justified by the last 3-year revenue growth and PAT growth of 27% and 55% CAGR respectively. Any dip in price can be a good opportunity for long-term investors,” said Yash Gupta, Equity Research Associate at Angel Broking.
The company has its business spread over 60 countries and a great track record of revenue delivery and profitability across the United States, Europe, Canada, Australia, India and the rest of the world. Some of its top B2B clients include Sagent Pharmaceuticals and Apotex as well as Fresenius Kabi USA and Athenex Pharmaceutical Division in the United States and the rest of the world.
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