REUTERS - Indian drug maker Eris Lifesciences Ltd's (ERIS.NS) shares swung between gains and losses in a tepid market debut on Thursday, after raising 17 billion rupees ($263.8 million) in an initial public offering.
Shares in Eris, whose portfolio includes drugs that treat diabetes, hypertension and cardiovascular diseases, was down 0.45 percent at 600.30 rupees by 0932 GMT on the National Stock Exchange. The stock touched a low of 594.30 rupees, compared with its IPO price of 603 rupees. It earlier gained as much as 4.1 percent.
Although the company's operating profit surged 56.6 percent to 2.7 billion rupees ($41.8 million) in the year ended in March from the previous year, some analysts expressed concerns about the growth prospects of its key brands and its ability to expand to new segments.
Emkay, a domestic brokerage, warned Eris could see "a number of key brands seeing growth taper off in their overall segments," while noting its outlook would depend on its ability to sustain earnings growth "by identifying new segments and therapies."
Eris IPO was subscribed more than three times on the last day of the sale on June 20.
Some analysts said Eris would likely prove a winning bet given it primarily caters to the domestic market, at a time when some drugmakers are facing increased regulatory scrutiny in overseas markets.
The drugmaker is also expected to capitalise on increased demand for treatments for lifestyle diseases such as diabetes.
($1 = 64.5400 Indian rupees)
Reporting by Arnab Paul, Jessica Kuruthukulangara and Rafael Nam; Editing by Gopakumar Warrier