This post on Gland Pharma IPO attempts to bring out consolidated brokerage views , subscription information, Grey Market Premium (GMP) and anchor investor information where applicable. The information collated from various sources and reports in public domain can help investors to decide whether they should subscribe to Gland Pharma IPO or not.
Gland Pharma IPO: Grey Market Premium etc.
- 10-11-20 GMP Rs. 20
Consolidated Brokerage Views on Gland Pharma IPO
Capital Market : ” Score 45/100 ; t the higher price band of Rs 1500, the offer is made at around 31.7 times its FY 2020 EPS of Rs 47.4 on a post-issue equity share capital of Rs 16.33 crore of face value of Rs 1 each. There is no comparable listed player with mirror business.While, it is not unusual for a growing pharma company to command such valuations, the Chinese ownership may not be received well by the market, given the strong anti-China sentiments within India. “
Choice Broking: “As such there is no comparable listed in the domestic market having business operations similar to Gland Pharma. If we consider international peers like Recipharm AB, Catalent Inc. and Lonza Group AG, the average TTM P/E comes out to be 56.5x. However, considering valuation metrics in couple of M&A deals (like Aurobindo Pharma’s acquisition of certain business lines of Spectrum Pharma in 2019 and Recipharm acquisition of majority stake in Nitin Lifesciences in 2019) which happened in the recent past, the demanded valuation by Gland Pharma seems to be stretched.Thus, considering the strong fundamentals and stretched valuation, we assign a “Subscribe with Caution” rating of the issue.”
HEM Securities: “Company is bringing the issue at p/e multiple of approx 30x at higher end of price band of Rs 1490-1500/share on FY20 PAT basis.Company has extensive and vertically integrated injectables manufacturing capabilities with a consistent regulatory compliance track record. .Also company has track record of growth and profitability from a diversified revenue base with healthy cash flows. Hence fundamentals of company looks strong . Looking after current scenario we recommend investor with risk apetite can subscribe issue for short term while investors with long term horizon can subscribe the issue for long term purpose.”
KR Choksey: “we recommend a “Subscribe” rating on the biggest Pharma IPO issue in the country, available at an attractive valuations.”
Nirmal Bang : “The company intends to do capex with the IPO and cash on books, which can temporarily affect the return rations in near term however the long-term trajectory remains positive The issue price commands P/E of 31.7x FY20 and 19.5x Q1FY21 annualized earnings at the upper price of band of Rs 1490-1500, which is at upper end of Industry. However, going forward the higher revenue growth, improving profitability would make it a better choice among peers. We recommend “Subscribe” on the issue for long term gains.”
SMC: “Score 3/5 ; Gland Pharma is one of the fastest growing generic injectable companies in India. With a strong product pipeline and more complex products under development, focus on B2B expansion and licensing and opportunities to enter more therapy areas, the company looks promising. Gland Pharma’s promoter Fosun Pharma is a China-based entity. The company will become the first large Indian firm with a Chinese parent to go for public listing. However, only a small amount of the money raised through the issue will go to the company.”
SP Tulsiyan Website: “Despite recent IPOs being a mixed big, potential for listing gains is seen. And for portfolio investing, share is a very good pick, given its superior margins and healthy growth rates.”
MORE WILL BE ADDED AS THEY BECOME AVAILABLE
Standard disclaimer: I am not a SEBI registered analyst /investment adviser and above infoimration is collated from various online sources and is for educational purpose only. Please visit indidivual brokearge sites to read the actual reports. Please donot make ypur investkent decisions based on this info as it is not completre amd exhaustive. Please do your own due diligence as stock market investments have high degree of inherent risk.