Mumbai: Did retail investors and HNIs miss the opportunity to invest in the recently concluded mega initial public offer (IPO) of Hyderabad-based Gland Pharma? Suddenly, the company’s shares in the grey market are seeing huge demand, with premium on the stock touching Rs 143 on Wednesday ahead of the listing later this week.Gland Pharma shares were available at a premium of Rs 20 in the grey market during the offer subscription period between November 9 and 11. The price quoted in the grey market is the ‘premium’ over the likely issue price of Rs 1,500 per share.Although the Rs 6,480-crore IPO, the largest in the Indian pharma sector, received overwhelming support from both foreign and domestic institutional investors, the issue was cold-shouldered by retail and HNIs. The portion set aside for retail investors has witnessed 23.6 per cent subscription while that of non-institutional investors was subscribed just at 50.5 per cent.Domestic brokerages are bullish on the stock as it has one of the strongest pipelines in the high-entry barrier injectables segment. Its 267 ANDA filings comprise 191 ANDA filings for sterile injectables, 50 for oncology and 26 for ophthalmic related products.Between FY18-20, Gland Pharma’s revenues have grown at a CAGR of 28 per cent while June quarter revenue grew by 31 per cent. Due to no debt and high cash, the company has strong net profit margins at 29.4 per cent in FY20, which improved from 19.8 per cent in FY18.The company plans capex with the IPO and cash on books, which can temporarily affect the return rations in near term. But the long-term trajectory remains positive, said analysts.“We expect overall revenue CAGR of 20 per cent over FY20-23, along with EBITDA margin expansion of 120 bps, to drive 21 per cent EBITDA CAGR for Gland over the next 3 years,” said Rahul Jeewani, analyst, IIFL. “Additionally, the company’s strong net cash balance sheet with robust 24 per cent returns on equity, further drives our positive view on the stock.”Many analysts believed that higher revenue growth and improving profitability would make it a better choice among peers.Analysts are bullish that the company is also expanding its footprint in new geographies and investing large amounts in manufacturing capabilities and R&D to keep the order pipeline healthy.“The company is present in one of the fastest-growing generic injectables spaces, with an extensive vertical integration and follows a B2B model across markets,” according to Sharekhan.