On Wednesday, the share price of a generic injectable-focused pharmaceutical company moved down by 3.6 percent on BSE to Rs. 1,771.05, after nearly 1.02 crore equity share, equivalent to a 6.2 percent stake, worth Rs. 1,815 crore exchanged hands on June 19th via a block deal.
With a market capitalisation of Rs. 29,760.75 crore, at 10:36 a.m., the shares of Gland Pharma Limited were trading in the red at Rs. 1,801.95, down by 2 percent, compared to its previous closing price of Rs. 1,838.5.
A few sources stated that the Shanghai-based Fosun Pharmaceutical Group, a company’s promoter, was most likely the seller of Gland Pharma since it was planning to cut off a 5 percent stake in the business through a block deal, pricing the sale at $172 million.
According to the report, the seller is a subsidiary of Shanghai Fosun Pharma (Group) Co., and the floor price was fixed at Rs. 1,750 apiece, representing a nearly 5 percent discount to Gland Pharma’s closing price on Tuesday, with a 90-day lock-in period on the additional sale of shares.
In order to strengthen its balance sheet, Fosun Pharma was reportedly seeking to sell its stake in the business over the next few months, unless buyout companies step in with an offer.
Fosun Pharma, the listed subsidiary of Chinese billionaire and investor Guo Guangchang’s Fosun International, owns 57.86 percent of Gland Pharma.
For around $1.1 billion, Fosun Pharma acquired a 74 percent stake in Gland Pharma in 2017 from a consortium that included KKR & Co. Three years later, in 2020, the company went public in Mumbai.
Through the IPO, Gland Pharma raised Rs. 6,499 crore, out of which, Rs. 1,944 crore was raised from 70 anchor investors. The stock was listed at a 14 percent premium, and the issue price was Rs. 1,500.
In terms of financials, the company’s revenue from operations grew by nearly 95.8 percent YoY from Rs. 785 crore in Q4 FY22-23 to Rs. 1,537.45 crore in Q4 FY23-24, accompanied by a rise in the after-tax profit of 144.5 percent YoY, from Rs. 78.7 crore to Rs. 192.42 crore, during the same period.
The stock has delivered positive returns of nearly 76 percent in the last one year, but has given 5.5 percent of negative returns year-to-date.
Established in 1978, Gland Pharma Limited is one of the largest and fastest-growing injectable-focused companies and operates primarily under a business-to-business (B2B) model with a track record in the development, manufacturing, and marketing of sterile injectables.
The company has a wide range of injectables, including vials, ampoules, pre-filled syringes, lyophilized vials, dry powders, infusions, oncology, and ophthalmic solutions.
Written by Shivani Singh
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