Elder Pharma had entered the capital market with an IPO of 48.86 lakh shares of Rs 10 each for cash at a premium of Rs 100 per share, aggregating Rs 53.74 crore. Applicants had to pay Rs 55 on application and the balance Rs 55 on allotment. The offer had opened on February 16 and closed on February 22, 2000. The issue, which has been 100 per cent underwritten, was lead-managed by SBI Capital Markets and Kotak Mahindra Capital Company.

Sources said the oversubscription indicates pure retail interest in the company and does not include any bulk institutional purchases. This marks the closure of the second major pharma IPO, after Glenmark Pharmaceuticals' highly successful public offer.

Elder Pharma is ranked the 10th fastest growing pharmaceutical company in terms of turnover value and growth in market share in the first half of 1999, as per a market review conducted by IMS Health.

The company's key brands -Shelcal (calcium oral solids) is growing at 32.60 per cent while Chymoral (proteolytic enzymes) are growing at over 34 per cent. Elder Pharma is targeting a growth rate of 38 per cent. The company already has a string of strategic alliances including a a tie-up with Fujisawa Pharmaceuticals Company of Japan for manufacturing and marketing cefixime -a broad spectrum third generation cepholosporin antibiotic.

Elder Pharma also plans to launch a host of new products, including a drug to treat hepatitis B&C from collaborator SciClone of the US and another brand, Triflusal, for cerebral stroke from Spanish company, Uriach & CIA. The hepatitis drug, branded Zadaxin (thymosin alpha 1), is slated to hit the market in April-May and is currently being used by the army.