Know How to Check Gland Pharma IPO

Gland Pharma, the Hyderabad-based pharmaceutical company that launched its IPO on November 9, finalised the allotment status on November 17. If you have applied for the IPOs, you can check gland pharma IPO allotment status online by visiting the registrar’s website or in the BSE web portal. But before you check the allotment status, let’s take a look at the market response towards Gland Pharma IPO.  

This year the market has given mixed performance in the initial public offerings segment. Companies such as Rossari Biotech, Happiest Minds, Mazagon Dock IPOs were oversubscribed by a large margin, whereas other companies received a lukewarm response from investors. Interest surrounding Gland Pharma IPO was piqued for several reasons. Firstly, it is the first pharma company to debut in the exchange this year amid the COVID-19 environment. Since the pandemic outbreak, pharma stocks registered a steep growth rate with renewed interest from investors.

Secondly, Gland Pharma is backed by Chinese Pharma company, Fosun Pharma, and it is the first Chinese firm to debut on the Indian bourses. The IPO announcement happened when the bilateral relationship between the countries is strained over border disputes. 

Overall, the market response towards Gland Pharma IPO was moderate. During the three-day bidding window, the IPO oversubscribed by only 2.06 percent. Shares in the HN1 quota and retail remained largely unsubscribed.  

Stretched Pricing, Political Turmoil Restrained Investors  

Analysing the cause behind the tepid performance of Gland Pharma IPO, experts have uncovered a couple of reasons. Some believe that pricing could have played a role in dampening investors’ interest in the offer. 

The initial public offering scrips were launched in the price band of Rs 1500, which is at the higher range. Seeing that retail investors subscribed only by 24 percent, one can say the price might have played a role in keeping smaller investors at bay. Other observed Chinese backing a possible damper. Also, the fact that Satyam founders have stakes in Gland Pharma might have influenced investors’ sentiment regarding the offer. However, institutional buyers offered significant support by subscribing 6.4 times their quota.  

The Timeline Of Gland Pharma IPO

• Gland Pharma floated its Rs 6,480 crore maiden public offer in the market on November 9. The offer remained available for subscription between November 9 and 11, 2020. 
• The issue size contained fresh shares, as well as offer for sale shares from current stakeholders. Fosun Pharma offloaded 1.9 crores shares.
• The Finalisation of Basis of Allotment happened on November 17. The shares will list on the bourses on November 20. 
• Unblocking of ASBA funds will happen on November 18, and the shares will get credited to DEMAT accounts of investors by November 19.

How to Check Gland Pharma IPO Allotment Status

You can check subscription status on the website of the registrar or from the BSE website. Follow the process mentioned below. 

• On the BSE website, select ‘Equity’ as asset type
• Select issuer name, ‘Gland Pharma’ 
• Enter your application number 
• Enter PAN number, and click on the search button

If you have entered all the correct information, the website will show the status of your application.  

The shares will get credited directly to your DEMAT account. If you have any query related to allotment status, instantly reach out to the registrar company. Link Intime India Private was the registrar of the issue. 

Conclusion 

Gland Pharma is the thirteenth company and the first pharma to hit the market in 2020. Due to the pandemic outbreak and lockdown, the IPO market registered tepid performance this year. Between March and July, there was a four-month-long dry spell in the IPO segment. However, the market clocked a good turnaround. Since the unlocking process started, several companies made a debut in the bourses.  We will see how Gland Pharma IPOs perform in the coming months after the lock-in period gets over.