Gland Pharma’s grey market premium rises ahead of listing today

Gland Pharma’s grey market premium rises ahead of listing today
Gland Pharma
  • The shares of the recently concluded Gland Pharma IPO will hit the bourses today. This will be the 13th company to list this year.
  • The issue received bids for 62 million shares against the offer size of 30 million shares and was oversubscribed by 2.05 times.
  • The shares are now hovering at a premium of around ₹105-110 in the grey market— which is an upside of 7% over the issue price band.
The shares of the recently concluded Gland Pharma IPO are soaring in the grey market ahead of its listing today. This will be the 13th company to list this year.

There wasn’t a great demand in the market for Gland Pharma shares— compared to its other IPO peers like Mazagon Dock and Chemcon Chemicals. The IPO saw a tepid response from investors during its ₹6,480 crore IPO.

The issue received bids for 62 million shares against the offer size of 30 million shares and was oversubscribed by 2.05 times.

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Gland Pharma IPOQualified Institutional BuyerNon-institutional InvestorRetail Individual InvestorTotal
Shares Offered8,639,3946,479,54615,118,93930,237,879
No. of times issue subscribed 6.40 times0.51 times0.24 times2.06 times

The shares are now hovering at a premium of around ₹105-110 in the grey market— which is an upside of 7% over the issue price band.

The grey market premium is the measure of the extra amount that the market is ready to pay for a newly listed company’s shares. However, it is not an official measure of the market premium. But it is a fair indicator of demand for the shares in the market.

Gland Pharma’s IPO clocked in a subdued response due to multiple factors, from Chinese promoter Fosun Pharma to fierce competition in the industry. This was the second public issue after SBI Cards and Payment Services, which raised about ₹10,355 crore.
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