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BENGALURU  - Shares of India's Gland Pharma got off to a flying start in their market debut on Friday, rising as much as 23% and highlighting a strong appetite for drug stocks.

The Hyderabad-based company opened at 1,710 rupees per share, after its stock was priced at 1,500 rupees in India's largest initial public offering by a drugmaker, giving it a market value of 279.21 billion rupees.

Pharma stocks are on a tear this year, with the Nifty Pharma Index up nearly 44%, far outpacing the 5% rise in the benchmark NSE Nifty 50 index.

Growth in the Indian pharmaceutical market bounced back to pre-pandemic levels in October, helped by cardiac, gastroenterology and dermatology markets, Prabhudas Lilladher analysts said in a note on Tuesday.

Established in 1978 and backed by China-based Shanghai Fosun Pharmaceutical Group Co Ltd, Gland Pharma makes injectable generic drugs and sells its products in over 60 countries.

"(Gland) has never received a negative USFDA report. The future prospects are bright as it has 267 ANDA filings of which 215 are approved," said Hemang Jani, equity strategy head, broking and distribution, at Motilal Oswal Financial Services Ltd.

The company offered 43.2 million shares in the IPO, including a fresh issue of 8.3 million shares, the proceeds from which will be used to fund capital expenditure needs. It raised 64.80 billion rupees ($873.79 million).

For the year ended March 31, Gland posted https://www.sebi.gov.in/filings/public-issues/nov-2020/gland-pharma-limited-prospectus_48166.html a profit of 7.73 billion rupees and revenue from operations of 26.33 billion rupees.

Some of Gland's customers include companies such as Novo Nordisk and Viatris, John Christopher, practice head of business intelligence, pharma, at GlobalData told Reuters.

Kotak Mahindra Capital, Citigroup Global Markets India and Nomura Financial Advisory and Securities (India) were among the lead book runners for Gland's IPO.

(Reporting by Anuron Kumar Mitra in Bengaluru; Editing by Anil D'Silva)