Gland Pharma Limited debuted on the bourses on Friday the 20th November and had a decent performance gaining over 21%. The company had tapped the capital markets with its fresh issue of Rs 1,250 crs and an offer for sale of 3,48,63,635 equity shares in a price band of Rs 1,490-1500. Earlier the company had allotted 1,29,59,089 shares to 70 anchor investors comprising of 131 entities. The highest allocation was made to Smallcap World Fund who was allotted 8,57,400 shares or 6.62% of the anchor allotment. This was followed by 6,84,300 shares or 5.32% to Government of Singapore.
The issue was open from Monday the 9th of November to Wednesday the 11th of November.
The issue saw QIB’s subscribing the QIB portion 6.4 times. HNI portion was undersubscribed at 0.51 times while Retail portion remained undersubscribed at 0.24 times. There were just under 2 lac applications and the average application size was 1.8 lots or roughly 18 shares.
There was no funding in this issue for the HNI considering the highly fluctuating premium in the grey markets and the fact that HNI interest was likely to be lukewarm as it finally turned out to be.
The discovered price was Rs 1,701 on BSE and Rs 1,710 on NSE. At this price, 78,021 shares were traded on BSE and 24,63,249 shares were traded on NSE. The high of the day was Rs 1,850 on both the exchanges. The low was the open of Rs 1,701 on BSE while it was Rs 1,700 on NSE. The closing price was Rs 1,820.45 a gain of Rs 320.45 or 21.36% on BSE. The closing price on NSE was Rs 1,819.55, a gain of Rs 319.55 or 21.30%.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 1701.00 | 1850.00 | 1701.00 | 1820.45 | 320.45 | 21.36 | 1777.61 | 787955 | 470100 | 59.66 |
| NSE | 1710.00 | 1850.00 | 1700.00 | 1819.55 | 319.55 | 21.30 | 1765.57 | 11310647 | 6362366 | 56.25 |
| Total | 12098602 | 6832466 | 56.47 |
The traded volume on the two exchanges combined was 120.98 lac shares which was 28% of the IPO size of 431.97 lac shares and 40% of the non-anchor portion of 302.37 lac shares. Delivery volume was 68.32 lac shares which was 59.66% of the traded volume. It was 15.82% of the IPO size and 22.60% of the non-anchor portion. The weighted average of the day’s trade was Rs 1,777.61 on BSE while it was Rs 1,765.57 on NSE.
The company would be closely monitored as there is a foreign holding cap of 75% and the company is quite close to it with the promoter post diluting being close to 58%. The remaining shares are largely held by various institutions, both domestic and Foreign and also retail individuals. The enforcement directorate also holds 60 lac shares, a shade over 3% belonging to the erstwhile promoters of Satyam Computer.
It would be interesting to see what happens if the ED decided to sell the shares.
In conclusion, the listing of Gland Pharma has been far better than the general consensus was. The counter would be closely monitored in the coming days.
