Mankind Pharma IPO: Issue sails through on Day 3, oversubscribed at 2.13x; QIBs, NIIs overbid their portions

Mankind Pharma’s IPO was fully subscribed at 2.13 times before the end of the third day of bidding.

mankind pharma
Mankind Pharma's shares were trading at a grey market premium of Rs 30 ahead of its listing.

Mankind Pharma IPO opened for subscription on 25 April and the issue has been fully subscribed at 2.13 times on day 3, with total bids of 5.98 crore shares for the 2.8 crore shares offered. Qualified institutional buyers (QIBs) subscribed for 573% of their reserved portion, demonstrating high interest in the issue. The portion for retail investors remains undersubscribed as investors bid only 0.36 times of the shares reserved for RIIs. The NII portion garnered 147% bids so far. The IPO closes for subscription today.

Mankind Pharma shares’ GMP fell to Rs 30 on Thursday, compared to Rs 92 per equity share on Monday. The GMP indicated the shares are valued 2.78% over the upper end of the share price on offer. The price band for its public issue at Rs 1,026-1,080 per equity share of face value Re 1 each. At the upper end of the price band, the company’s promoters and shareholders seek to raise Rs 4,326.35 crore from the IPO.

Mankind Pharma is engaged in developing, manufacturing, and marketing a diverse range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products. The drug maker works in a number of acute and chronic therapeutic fields, including anti-infectives, cardiovascular, gastrointestinal, anti-diabetic, neuro/CNS, vitamins/minerals/nutrients, and respiratory areas. 

“At the upper price band of Rs 1,080, MPL is available at a P/E of 30x (FY22), which appears reasonably priced compared to peers. Considering under-penetration of healthcare services and lower consumer expenditure in healthcare in India, MPL’s focus on chronic therapeutic areas, emphasis on increasing penetration in metro and Class I cities, growth in consumer healthcare business, good financial performance and strong distribution network, we assign a “Subscribe” rating on a long term basis,” said Geojit Financial Services, recommending investors subscribe to the issue. 

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First published on: 27-04-2023 at 11:51 IST