ICICI Pru Mutual Fund Seizes Opportunity: Acquires 4 Lakh Shares of Pharma Company Amidst 10% Dip in April

In a surprising twist, ICICI Prudential Mutual Fund has seized the opportunity to purchase shares of Gland Pharma, a mid-cap pharmaceutical company, amidst a notable market downturn this April. Despite a significant drop of over 10% in Gland Pharma’s stock value, the fund decided to invest, reflecting confidence in the company’s long-term potential. This decision comes on the heels of increasing concerns regarding potential tariffs on pharmaceutical goods, announced by US President Donald Trump.

Market Reaction to Potential Tariffs

The pharmaceutical sector has faced intense scrutiny following Trump’s suggestion of imposing unprecedented tariffs. Although Gland Pharma was initially exempt, the president clarified on April 4 that pharmaceuticals would be treated as a distinct category, with an announcement expected soon.

Key Insights:
- Gland Pharma generates 54% of its revenue from the US market.
- Any increase in tariffs could directly affect its profitability, particularly as a Contract Manufacturing Organization (CMO) for US clients.
- Kotak Institutional Equities predicts that a 26% tariff could reduce Gland Pharma’s projected profit after tax (PAT) for FY27 by 15%, dropping it from $143 million to $122 million.

As fears of these tariffs took hold, Gland Pharma’s shares experienced a sharp selloff, reflecting investor anxiety.

Strategic Buy Amidst Market Turbulence

However, ICICI Prudential Mutual Fund saw this dip as a prime buying opportunity. On April 11, 2025, the fund acquired 4,00,020 shares of Gland Pharma. In an official statement to the stock exchange on April 16, the fund confirmed this purchase, which increased their stake in the company to 5.08% of its paid-up capital.

Fund’s Acquisition Details:
- Total shares held: 83,71,114
- Percentage of ownership: 5.08%

Positive Shift in Gland Pharma’s Stock

Following ICICI Prudential’s announcement, Gland Pharma’s share price showed signs of recovery. In the trading session on Wednesday, the stock climbed 0.8%, reaching a high of ₹1439. Over the last three days, the stock has seen a nearly 3% increase, indicating a potential turnaround.

Current Trading Status:
- Latest share price: ₹1435.05, up 0.59% as of 11:40 AM.

This situation highlights a critical moment for Gland Pharma, as it navigates potential challenges while also capturing the interest of significant investors like ICICI Prudential Mutual Fund. The coming weeks will be crucial in determining how the company adapts to the evolving regulatory landscape and market conditions.