Nicomac Machinery will sell a 1.5% stake in Gland Pharma
via block deals on April 21. CNBC TV18 reported, that the investor is selling
around 2.45 million shares in the company, which accounts for 1.5% of the total
outstanding shares.

The floor price has been fixed at Rs 3,118 apiece. This
marks a discount of around 5%, as compared to the price of Gland Pharma shares
at the market closing hours on April 20.

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According to the CNBC TV18 report, “there is an
option to upsize the deal”. In addition, the terms include a 60-day lockup
on the seller.

Citigroup is a joint bookrunner for the block deal, the
report added.

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The news comes after stock trading platform Motilal Oswal
projected a positive outlook for Gland Pharma. “We value GLAND at 35x
12-month forward P/E to arrive at our TP of Rs 4,040. We remain positive given:
a) its niche product pipeline in injectables, b) volume gains in existing
products, c) wider market operations for its portfolio, d) a strong cash
cushion for inorganic growth, and e) consistent compliance,” it said.

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Further, Motilal Oswal said Gland has 11 injectable
products on the USFDA shortage list, which have combined sales of USD400
million over the past 12 months.

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“The overall number of drugs under
shortage in the US has declined to a 15-year low at present. However, the
number of injectables facing a shortage is at its 20-year average but is at a
record high as a percentage of total drug shortages. Among the Indian players
present in the US, Gland appears to be the largest beneficiary from drugs under
shortages due to consistent compliance and manufacturing
capacity/capabilities,” it added.