Gland Pharma IPO: Growth good, but ownership Chinese, that is a concern, says Anil Singhvi

Gland Pharma Initial Public Offering (IPO) opened today. What should investors do with this IPO – should they put money in it or skip it? Zee Business Managing Editor Anil Singhvi gives his sharp and incisive take on it! 

Gland Pharma IPO is open till Wednesday and the investors will be able to do a minimum investment of Rs 15,000. The price band of this share is between Rs 1490 and Rs 1500.

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अाज से खुलेगा ग्लैंड फार्मा का IPO

अनिल सिंघवी- कंपनी की ग्रोथ सॉलिड, वैल्युएशंस भी सस्ते लेकिन चीन के प्रोमोटर्स होने से अनिश्चितता

लिस्टिंग गेन के लिए न लगाएं पैसा, ज्यादा जोखिम लेने वाले और लंबी अवधि के निवेशक ही करें निवेश#NewIPO #IPO #GlandPharma @AnilSinghvi_ pic.twitter.com/GVwxxm2P4j

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The Market Guru said that there was no doubt about the credentials of the company and the company has a strong product pipeline. Growth in the last three [financial] years are very strong with revenues rising by 27 per cent while the profits by over 51 per cent. 

The company has been able to get approval of 215 NDAs (New Drug Approvals) out of 267 which is likely to push growth further. The operations are incomparable to Indian companies and if the overseas companies are compared, the valuations of Glen Pharma look considerably cheaper.  

The only problem area is the presence of Chinese promoters. The company which has been in operations since 1978, was taken over by a Singapore-based company Fosun, which itself has Chinese promoters, he said. This means that this Indian company is a subsidiary of a Chinese company. 

The current sentiment around China and its companies could be a crucial factor he said. This is an offer for sale, which means that whatever money the investors put, will go to the Chinese promoters.  

But, otherwise there is no problem as far as its growth prospects, fundamentals and balance sheet is concerned, the Managing Editor said. 

The only risk that remains with this company could be on the part of the government regulations, he said.  

Keeping these things, Singhvi said he would like to take a neutral stance on this stock. He would have recommended investors to put money in this stock, if the promoters were not Chinese, he further added. 

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He advised investors to not put money for listing gains only. Long term investment should be done with the view of China factor. High risk investors should put money into this IPO.