Fosun Pharma has divested approximately 99 lakh shares, representing a 6% stake in Gland Pharma, for Rs 2,800 crore through a block deal on the exchanges. Following the transaction, Fosun Pharma's holding in the Hyderabad-based drugmaker has declined to about 45.77%, though it remains the company's single largest shareholder and promoter.

Major buyers in the block deal included Kotak, Axis, and ICICI Prudential Mutual Funds, which picked up the shares on offer. The participation of large domestic institutional investors is a routine feature of block deals, which are typically executed at a discount to the prevailing market price to clear large volumes in a single transaction window on the exchanges.

Gland Pharma shares closed higher at Rs 2,932.40 on the day of the transaction, indicating that the supply overhang from the stake sale was absorbed by demand.

Gland Pharma is one of India's largest manufacturers of generic injectable pharmaceutical products, with a focus on sterile injectables, oncology, and other specialty formulations. The company is listed on both Indian stock exchanges. Generic injectables are a capital-intensive, high-barrier segment compared with oral solid dosage drugs, which has historically supported the margins and market position of established players in the space.

Fosun Pharma, a Chinese pharmaceutical and healthcare group, acquired a controlling stake in Gland Pharma in 2017 through an open offer and share purchase, in what was then one of the largest pharmaceutical sector deals involving a Chinese buyer in India. The current sale represents a further step in the gradual reduction of Fosun's holding since that acquisition, and market participants typically track such promoter-level stake changes for signals about the parent company's longer-term commitment to the asset, as well as any potential increase in Gland Pharma's free float and institutional ownership over time.

The transaction details are based on exchange data. (Economic Times)