The initial public offering (IPO) of Gland Pharma was completely subscribed as on Wednesday. As per stock exchange provision data, Rs 6,480-crore issue received bids for 5.6 crore equity shares against IPO size of over 3.02 crore equity shares, that goes to 1.85 times subscription.
The issue has received good response from qualified institutional investors. Then reserved portion of institutional investors has been subscribed 6 times so far, while the portion set aside for retail investors has seen 20 percent subscription, while non-institutional investors is of at 22 percent.
The Gland Pharma IPO has received a very low response, considering its size, strong business, the bright outlook for the pharma sector, general optimism in the market and heavy demand seen for other initial offerings this year. In September alone, three issues were subscribed by as much as 150 times, compared to the 1.5 times demand seen for Gland Pharma's issue.
Notably, Gland Pharma flagged evolving China-India political tensions as a risk factor to its IPO. However, analysts say that while anti-Chinese sentiment due to border disputes may have affected the demand, the bigger reason could be the rich valuation of the shares being offered.
IPO of Gland Pharma Raises Rs 1,944 Crore
