Gland Pharma Limited IPO Message Board (Page 21)

Gland Pharma IPO – Schedule *(Tentative)*

04th Nov – Announcement of Price Band
06th Nov – Anchor Investors Allotment
09th Nov – Offer Opens
11th Nov – Offer Closes
17th Nov – Finalisation of Basis of Allotment
18th Nov – Unblocking of ASBA Accounts
19th Nov – Credit of Equity Shares to Depository Accounts
20th Nov – Commencement of Trading


Gland Pharma IPO – Issue Information *(Tentative)*

Issue Opens on: 09 November 2020
Issue Closes on: 11 November 2020
Issue Type: Book Built Issue IPO
Issue Size: 4,44,79,019 Shares
Face Value: Rs.1/- per Share
Issue Price: Rs.1,300 – Rs.1,300 per Share *(Tentative)*
Discount: NIL
Market Lot: 10 Shares
Listing At: NSE, BSE

Equity Shares outstanding prior to the Issue = 15,49,49,490 Shares
Fresh Issue of Shares 96,15,384 @1,300/- = Rs.1,250.00Crs
Offer for Sale of 3,48,63,635 Shares @1,300/- = Rs.4532.27Crs
Equity Shares outstanding after the Issue = 16,45,64,874 Shares

Category-wise Break up:
Anchor – 1,33,43,706 Shares = 1,734.68Crs
QIB – 88,95,804 Shares = 1,156.45Crs
NII – 66,71,853 Shares = 867.34Crs
RII – 1,55,67,656 Shares = 2,023.80Crs (Lot size: 10 = 15,56,766 Forms)
Total Issue – 4,44,79,019 Shares = 5,782.27Crs.

Subscription required for 1X
RII = 15,56,766 Forms
NII = 867.34 Crs


Gland Pharma IPO – Financial Information (Basis of Valuation)

The information is collated from the following documents:
1) DRHP = Draft Red Herring Prospectus dated July 10, 2020 (316 pages)

EPS for FY17-18 >>> Rs.20.73 (Page #86 of DRHP)
EPS for FY18-19 >>> Rs.29.16 (Page #86 of DRHP)
EPS for FY19-20 >>> Rs.49.88 (Page #86 of DRHP)

RoNW for FY17-18 >>> 13.32% (Page #87 of DRHP)
RoNW for FY18-19 >>> 15.79% (Page #87 of DRHP)
RoNW for FY19-20 >>> 21.20% (Page #87 of DRHP)

NAV as on March 31, 2020 was Rs.235.32 (Page #87 of DRHP)

Listed Industry Peer Group (Page #87 of DRHP): NONE

 
Gland Pharma IPO – *Market’s Current Estimates of oversubscription*:

NII = 60K Crs. = ~69.18X
RII = 27L Forms = 1.73X Applic. wise (Avg allotment of ~6.34 shares per lot)

Interest cost *@7.50%p.a.* for 7days = 186.99paise for 1X

Thus, for NII the costing = 69.18 X 186.99paise = Rs.129.35 per share (= GMP)

And, for RII the costing = 6.34 X 129.35 = Rs.820/- (= Kostak)

@Vipul Jain
Also Days sould be 8 instead of 7.On monday there is holiday.So HNIs have to take this into consideration.

@HML
PAHELE KE CALCULATION ME RATE OF INTREST 7.5 % SE CALCULATE KIYA AB 5.5 % SE.

Strictly avoid........,

Being this IPO is a full OFS, it is simply that the (chinese) promoters of the company are interested into sell their stake, under the IPO rally considering the tension between India and China.
Otherwise, why promoters of any company (doing well) is willing to dilute their stake, even when no regulatory body has forced them to do so (For example in case of CAMS, SEBI asked NSE to sell its share in company to public).

Definitely, Indians must become majority stake holders in the company, but not at this price band.
Chinese promoters of the company is just trying to encash the opportunity (IPO rally) to mint the money... before they are asked to do by SEBI.

By making the IPO fail, we can make the company to reduce the price band, like Likhitha.

Gland pharma has a 74% foreign holding limit. Had foreign promoter not put up their share for sale then it would have meant only domestic share holder could apply or apply to extent of 74% of fresh issue. It would have also meant lower price for exiting domestic Indian promoter too

This issue is raising fresh capital of Rs 1250 crore. Balance issue is OFS

Friends I opened 5 different dmat account from my family member in zerodha to apply ipo. But except me other 4 member do not have online banking so cant apply through ASBA, so question is can I apply for all 5 including me from my Axis bank internet banking ASBA. Axis banking is only on my name. From it can I apply for other family members?????please help to reply.

Bank of Baroda, SBI, you can apply for more than 1 IPO from different demat accounts.

Following inputs are relevant for analyzing this issue.
1. This company’s business model is B2B and not B2C. Hence there are no listed peers for comparison. This model enables the company in better cost control and pricing power. It also helps in geographical expansion in least time and at least cost.
2. This company exports its products all over the world and more than 60% to USA. Almost nil to Communist China. It has not received a single adverse observation from US FDA unlike major Indian Pharma companies.
3. It is majority owned by Fosun Singapore which is again owned by the Chinese parent. From risk management angle, for an investor it is an indirect exposure to China and direct exposure to Singapore.
4. It has excellent balance sheet strength and EPS. Even after the issue, diluted EPS will be excellent as it has large component of OFS rather than fresh issue. Projections of PE of around Rs.30 post issue are excellent for the Pharma sector.
5. It plans to enlarge exports to China and Africa which are very large markets and boost the company’s financial indicators in a couple of years post issue. Point is it is a growing company with excellent prospects.
6. Face value of Rs1. has no relevance to pricing, as what matters is the EPS.
This is not a recommendation to subscribe, but a perspective which needs to be considered. Lastly, in financial matters sentiments are to be kept away.

China v india
I truely believe INDIA FIRST policy in entire economy
But
The fact is -it is not possible-
Atleast near future

Our COs. Are heavily dependent on chinese
Computer hardware
Mobile handsets
Electronics
Auto electric
Home appliances
IT and ofc
Etc...

Now our government trying to come out of it by taking steps like PLIs,ban and import duties
But
It is not enough
Examples-
Mobile?
Direct import came down but assembling in India but still row material coming from China
Same case in LED TVs,ACs, Laptops

So , my point is if someone not happy with china
Then many many shares are untouchables
(I am in electronics mobile and appliances business so I have some knowledge but surely above argument is applicable to other sectors also)

@Harit...

Probably U Missed The Main Point Of My Eassay.
"For Anything, U Need To Start With A Brick And Need To Continue To Build".
Humare Paas 6 Mahina Pehele "Face Mask & PPE Kit" Banane Ka Infrastructure Bhi Nehi Tha. But Do You Know Today India Probably The 2nd Biggest Exporter of Those That Also With Super Duper Best Qualitiies. And These Items Not Only Were Heavily Dependant In China But Were 99.99999% Dependant. But Look At Today. Humare Pass...Yea Nehi, Woh Nehi, Aisa Nehi, Waisa Nehi...Agar Sirf "Nehi Nehi Nehi" Botla Rehta Toh Koi TV Serial Baan Jaate. Aaj Ka 2nd Largest Exporter Nehi.

I would suggest atleast do your but by not subscribing to a Chinese backed IPO...not that one is gonna get 100% gains also to think twice...I expect this to be a negative listing at this band...sureshot I am not applying to a china backed IPO...
Wherever possible if we start avoiding china and their products...one day or the other we can also become like China...sitting and cribbing that the inside parts of a tv or mobile are china will not take us anywhere...
Buy indian products let them get some money and they will surely improve quality...
Apple never became a bugfree software overnight...

SBI Card was clear avoid reached Rs 500 IPO cost Rs 755 Issue 10354 cr
UTI AMC , asked to apply , but changed my mind on last day saying it go to Rs 500 on listing
yes bank also not to apply issue price Rs 12 went to low of Rs 10.5 now Rs 12.3 , it was 15000cr FPO ( no listing gains )
Gland pharma good ipo , but price is Rs 1500 / IPO 6479 cr , you should get in range of Rs 1100 to 1250 hence clear avoid .
QIB AND HNI may subcribe as markets are above , Nifty 12263
wait watch the price , there is no hurry to buy the stock at Rs 1500 , but sure shot you are getting below the IPO price if not at Rs 1100

What will be the near term trigger points for market to crash??? Because USA president already confirmed now..

As per my calculation , estimate is very close to yours.1050~1200 range.Any covid vaccine rumour can only pull the stock.All pharma stocks are in overbought position.Relative strength is high.Soon correction can be seen.
yes bank 7-8
uti 500-600
sbi c 600-700

biden 270<

Gland Pharma IPO – *Market’s Current Estimates of oversubscription*:

NII = 25K Crs. = ~25.72X
RII = 20L Forms = 1.32X Applic. wise (Avg allotment of ~7.56 shares per lot)

Interest cost *@5.50%p.a.* for 7days = 158.22paise for 1X

Thus, for NII the costing = 25.72 X 158.22paise = Rs.40.70 per share (= GMP)

And, for RII the costing = 7.56 X 40.70 = Rs.308/- (= Kostak)

So this data as per GMP...lest see how GMP will perform in next three days before ipo closing date....

Eagleye mam,
If the costing per share of HNI is Rs 40/share as estimated then GMP should go upwards only in next 2-3 days. Important now the NII subscription figure.

Steep pricing at above 30 PE, when many established name are available at 25 PE, Gland Phaarma IPO is strictly no no zone.
Abhi bahut saare IPO aane wale hai.

This PE comparison will not going to decide future price of gland pharma....only company own financial data will decide ... Most of above names are very small or nothing infron of GLand farma..
Let's wait how HNI participate...becs sometimes costly become more costly...

@KrishnaTwentyFour Ji, I wrote the same thing in earlier comment what you have just mentioned, but since this was specifically asked I put the list. In this list, Auro, Cadila, Lupin, Glenmark, Alkem, Wockhardt are bigger than Gland and have more brands and well diversified.
Let us wait for HNI figure till 1 PM on 11 November.

Investment of anchor investors is nothing new in primary market.Except ' T ' group IPOs , anchor investors usually invest in all IPOs because they are not bringing their own money.Almost 50% anchor investors are same in more or less all IPOs and most of them are mutual funds.For eg. if SBI , HDFC , ICICI , axis , kotak or birla sun life etc. are investing they are not bringing money from their own wealth.They usually invest SIP money.They are not bearing any loss if any.They pass on losses to their mutual fund investors.FRANKLIN TEMPLETON is the recent example.In QIB portion also their role is to complete the blank space in this type of IPOs.Always check HNI numbers on last day instead of QIBs.They put their own hard earned money or borrowed money on interest.
Investment is subject to market ishk.????
Investment is subject to investigation.????

Agree HML sir. I had earlier posted my views against NAM and it's CPSE ETF, and PSU stocks , but unfortunately some of the boarder were critical... people fall for ill advices , marketing gimmicks, advertisements, invest in low performing MFs, PSU shares without proper analysis..

Govt of Singapore is most conservative investor. If it is investing then it has checked all if and buts. So in my view, if any body can overlook india sino sentiment, can apply in it.

Don't apply this IPO......Very risky ....Keep safe your hard money

70% chance of negative listing
30% chance of positive listing
GMP is only Rs 40
after closing it should be negative

@ Pradip Ipo, @ Always Cautious

I will not apply.

As I have already mentioned-

A fundamentally strong Company having very strong balance sheet.
But,
There are three main concern -
1. Big size
2. Higher Price band
And
3. Third reason has more concern to me which one can find out by analyzing my name itself.

A very limited listing gain (5-7%) may be there (I doubt) but downside will have no limits on/after listing.

There is no harm to give a miss to Gland.

Thanks.

Aniket Indian Air Force - AniketIAF

Am i right ?

Now for the ipo, alright lets skip this one.. ????

As after good anchor too, again gmp made a new low of 40 today..

Btw Aniket Ji

A small request..

If i wanna connect with you outside chittorgarh site, where and how can i connect to you.. ????

Thank you.

       Market Cap            FY20 PE
       (in USD Mn)            
Gland Pharma       3,441              33.1
            
Sun Pharmaceutical Industries Limited       16,281              32.2
Dr. Reddy's Laboratories Limited       11,009              42.0
Cipla Limited       8,470              40.7
Lupin Limited        5,755              Negative EPS
Torrent Pharmaceuticals Limited       5,917              42.9
Cadila Healthcare Limited       6,047              38.2

Divi's Laboratories Limited       11,409              61.6

@arunARUN the most important part of your discussion is Market Cap and PE. the most important difference between Gland and others are that all those companies are in market from many years and performing with good promotors record. Here Gland is not even in market and asked 33 PE from the investors.
money is ours, for QIB who are anchor investors @1500 the money is of public. We have to think twice before applying.
other concerning fact: The promotors are Chinese pharma company who are selling Rs. 5200 Crore of their shares as offer for sale in this IPO.
Valuation is too high and money left for the investors is too low (maximum 5-15% listing gain)

This company is founded by an Indian in 1978 And it is based out of Hyderabad.So it so it is not a new company and it has been in existence for more than 40 years. Many companies In India are promoted by Chinese companies.Chinese pharma giant Fosun pharma Has pick up stake in the year 2017 and it has all manufacturing facilities based out of India. Agree to the fact that issue price could have been closer to 1350 but like any promoter they are taking advantage of the current market situation and pharma industry in particular. Moreover if you see the result it is been high-growth company Operating with in a very niche sector.

The IPO committee of the board "finalised allocation of 1,29,59,089 equity shares in aggregate, to anchor investors at the anchor investor allocation price of Rs 1,500 per equity share", the company informed stock exchanges.

At this price, the company garnered Rs 1,944 crore.

The anchor investors include Government of Singapore, Nomura, Goldman Sachs, Morgan Stanley, SBI Mutual Fund, Axis Mutual Fund, SBI Life Insurance Co., Fidelity, ICICI Prudential Mutual Fund, HSBC Global Investment Funds, Small Cap World Fund and The Scottish Oriental Smaller Companies Trust PLC among others.

arunARUN ji,
Aapne to "girishkumarj" (Mazgon dock forum wale) ki yaad dila di.
Wo sahab v Din mai das baar naya naya tark i.e EPS, PE, DIVIDEND .... Lekar aate the aur 300 k upper k listing ko v na kewal justify karte the balki us rate par v aankh mund kar khareed lene ki salah dete the.
Mazgon ki listing k din se hi forum se gayab hain.
Umeed hai, aap Gland ki listing k baad v dikhenge.

LM stooges never seens back

i am a number person. Show me one of my message talking about listing price and any such kind of suggestion.

I have only questioned posters comment on face value and offer price without taking into account any other financial number.

In my view whether any one wants to invest or not should be their own informed choices but they should not get misled by wrong factors like comparison of face value to offer price without taking into account other relevant metrics

Please guide me on how to tender shares for buyback in Angel Broking?
Thanks in advance

As per the financial data for the company, the IPO is a MUST TO AVOID.
Price Band is too high (having no scope of listing gain).
PE and PB ratios are also so high that the price band looks every expensive.

The GMP trend is also indicating same.

Besides that, Modi Govt is very strict to chinese businesses, specially the ones which are direct benefit to China and not to India. Be it strict scrutiny to any sort of chinese investment in India (after investment of Bank of China in HDFC) or be it banning PubG and TikTok (the ban can be seen as promotion to home grown products).

As long as BJP is in power, I don't see a smooth road for companies with Chinese Investments.
And Gland Pharma has 74% chinese investment.

Applying in the IPO, hoping for listing Gains and also hoping for appreciation, out of the box, will be a big gamble... One may win, one may lose.

Finally India is my country. At every front, I must stand with the country and at every front, I must strongly oppose India's enemies.
Gland Pharma is not the last opportunity of the share market, which if missed, I will lose the life time opportunity.
Such IPOs will come and go.
Such companies will come and go.

Even financial advisors follow ethics and self made rules.
Market is also ruled by the companies having good ethics, having promoters with sorted mindsets.

We, small investors also must follow some ethics, rather the lust for the money, over patriotism.

You stated
PE and PB ratios are also so high that the price band looks every expensive.

Compared to which pharma stock they are very high

primum 42/44

New low GMP 40/45