Market Update for 16 Sept. 2021 – Lupin to settle US litigation

India’s GDP to grow at 7.2%

According to a United Nations report, India’s GDP is expected to grow at 7.2% in 2021 on a low base of the previous year. However, the report adds that the GDP growth could slow down to 6.7% in the next year.  

The slowdown in GDP growth could be due to the ongoing human and economic cost of the pandemic as well as the negative impact of food inflation on consumption. Meanwhile, Nifty50 has continued its upward march to record highs and closed 0.6% higher today. It has risen 26% so far in 2021.

Sansera IPO receives strong interest

The auto component maker ’s IPO was oversubscribed 11.4 times on the final day. There was strong demand especially from qualified institutional buyers (QIB). The QIB portion was oversubscribed 26 times. 

Besides this, more companies are making a beeline to list on the exchanges. Paras Defence and Space Technologies is launching its IPO, on 21 September, with a price band of ₹165 to ₹175.

Lupin to settle US litigation

Shares of pharma major Lupin closed 3% lower today as it has decided to settle a US litigation related to the Glumetza, a drug for treatment for diabetes. Lupin would pay $250 million (~₹1,800 crore) to settle the dispute. 

Meanwhile, it has launched generic Duexis tablets in the US market which are used to provide relief of symptoms of rheumatoid arthritis and osteoarthritis. As per IQVIA, estimated annual sales of this drug in the US is about $765 million (~₹5,700 crore).