Gland Pharma shares in focus amid block deal reports; check details here

Shares of Gland Pharma will be in the focus during the trading session on Tuesday amid the block deal reports by two entities - Nicomac Machinery and RP Advisory Services. Both selling shareholders are likely to offload 4.4 per cent stake in the generic injectable pharma player.

Floor price of block deal has been set at Rs 1,725 apiece, a discount of 7.35 per cent from its previous close. The pharma stock had settled at Rs 1861.70 on Monday, after rising 6.07 per cent for the day. The total market capitalization of the pharmaceutical firm stood at Rs 30,000 crore.
 

The total offer size is likely to be around $150 million (about Rs 1,250 crore) with an option to upsize by $18 million (about Rs 150 crore). It means that the selling entities are looking to raise a total of Rs 1,400 crore at the upper threshold. Citi is the investment banker for the block deal.

The two entities are connected to Dr Ravi Penmetsa, who is the former promoter of Gland Pharma. Meanwhile, Penmetsa will continue to have around 1 percent balance stake in the firm, said the reports. Nicomac Machinery and RP Advisory Services hold 4.93 per cent stake in Gland Pharma before the deal.
 

China's Fosun Pharma is the promoter of Gland Pharma, which holds a 57.86 per cent stake in the pharma player. The drug maker has delivered a return of more than 47 per cent in the last one year, while the stock is down about 3 per cent in the year 2024 so far.