Insider trading allegations at Gland Pharma

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Editor's note: A little over a year ago, Gland Pharma was a star stock to own. Shares of the Hyderabad-based injectables maker, owned by Chinese conglomerate Fosun, hit a high of Rs 4,287 in August last year—up from Rs 1,500 in its November 2020 IPO—giving it a valuation of around Rs 70,000 crore. That put it on a par with Dr Reddy’s Laboratories, which had five times the revenue of Gland.  The story stands in sharp contrast today. The stock has fallen 54% since January and its valuation is around Rs 31,000 crore. Foreign institutional investors have reduced their stake by half, a bunch of promoter entities have sold out, even as some domestic institutions have increased their holdings. While the company posted increased revenue and profits in the two latest fiscal years (2020-21 and 2021-22), a lot has soured in the last two quarters.  When the company declared its earnings for the second quarter of the current fiscal year last week, the stock dropped 15% in a trading session. It was the biggest drop in a day since its listing. For …