Gland Pharma slides further on weak Q2, stress at Fosun
The pessimistic outlook by the rating agency triggered speculation that the Chinese firm may likely sell its stake in the Indian pharma company if its financial stress accelerates. Fosun International owns a 57.86% stake in Gland Pharma. The compa...
By ET Bureau | Updated:
iStock
The company launched its ₹6,500 crore IPO in November 2020. The shares were sold at ₹1,500 apiece.
Mumbai: Shares of Gland Pharma dropped 4.7% on Monday, extending their slide o the third day, amid concerns over financial stress at its promoter entity Fosun Pharma Industrial Pte.
A drop in Gland's September profits added to investor worries about the company.
Declining nearly 20% in the past three trading days, Gland Pharma shares ended at ₹1,784.65 on Monday. The stock has plunged 52% in the last year compared to a 4.8% fall in the Nifty Pharma index.
China-based Fosun International was downgraded by global rating agency Moody's by one notch last week and revised its outlook to "negative" from "ratings under review" amid concerns over the firm's accelerated asset sales. The pessimistic outlook by the rating agency triggered speculation that the Chinese firm may likely sell its stake in the Indian pharma company if its financial stress accelerates. Fosun International owns a 57.86% stake in Gland Pharma. The company launched its ₹6,500 crore IPO in November 2020. The shares were sold at ₹1,500 apiece.
