Gland Pharma IPO gets 2x bids

Mumbai: The Rs 6,500-crore initial public

offer

(IPO) for Gland Pharma, which is majority held by Chinese group

Fosun

, sailed through on Wednesday with the offer subscribed two times, despite opposition due to the

anti-China

sentiment.

This is the largest IPO for the

healthcare

sector in the country.

Since it opened for subscription on Monday, several posts with a negative connotation were being circulated on

social media

. There were also news reports that asked the government and the regulator to step in and stop the offer. Some even criticised the merchant bankers that were tasked with taking the company public.

At the close of bidding on Wednesday, there was demand for about 6.5 crore shares at the lower end of the Rs 1,490-1,500 price band, compared to a little over 3 crore shares that were on offer, BSE data showed.

In the offer, existing shareholders are selling shares worth about 80% of the total offer size, while the company will mobilise another Rs 1,250 crore for its own use.

Gland

Pharma is one of the first Chinese majority-owned companies operating in India that is going public.

The shares are expected to be listed on November 20. On Wednesday evening, according to operators in the grey market for stocks, the indicative listing price was around Rs 1,510.


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