Buying the dip? ICICI Pru Mutual Fund buys 4 lakh shares of THIS pharma company despite 10% fall in April

ICICI Prudential Mutual Fund lapped up shares of mid-cap pharma stock Gland Pharma from the open market despite an over 10% fall in its shares during the month of April so far.

Gland Pharma shares have faced a heavy selloff this month amid fears of the imposition of tariffs on pharma goods by US President Donald Trump. While pharma was exempted from the list of sectors where the US imposed levies, Trump announced that pharma tariffs will be set at unprecedented levels.

“We are considering pharmaceuticals as an individual category. An announcement regarding this will be made in the near future, not too far off. It is currently under examination,” he said on April 4.

How could pharma tariffs hurt Gland Pharma?

According to a report by Jefferies, Gland Pharma relies on the US for 54% of its sales. "As a CMO, a portion of Gland Pharma’s revenue comes from manufacturing for US-based clients. If tariffs increase costs, its business could be directly impacted," said the brokerage.

According to Kotak Institutional Equities, a 26% levy on pharma imports could hurt Gland Pharma's FY27 PAT by 15%, bringing it to $122 million from an estimated $143 million.

Against this backdrop, Gland Pharma shares witnessed a heavy selloff, losing 10% of their value in April so far.

Opportunity amid crisis?

However, ICICI Prudential Mutual Fund saw this fall as a buying opportunity, and lapped up 4,00,020 shares of the pharma company from the open market on April 11, 2025.

“This is to inform you that ICICI Prudential Mutual Fund (the Fund) under its various schemes holds equity shares of Gland Pharma Ltd. (the Company) whose shares are listed on your Stock Exchange,” the company said in a filing today, April 16.

“In this regard, kindly note that the schemes of the Fund have done acquisition of 4,00,020 shares of the company on April 11, 2025. As a result of the aforesaid purchase, the shareholding of the Fund has exceeded 5% of the paid-up capital of the company,” the exchange filing added.

Following the acquisition of shares, ICICI Prudential Mutual Fund, through its various schemes, holds 83,71,114 shares of the company, representing a 5.08% stake.

Gland Pharma shares extend rise

Following this update, Gland Pharma share price traded marginally higher in Wednesday's trading session. The stock rose 0.8% to the day's high of ₹1439. With today's gains, the stock has risen for three consecutive days, rising nearly 3% during this period.

As of 11.40 am, Gland Pharma share price was trading at ₹1435.05, up 0.59%.

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