Mankind Pharma shares listed at 20.37% premium over IPO price on NSE and BSE amid positive domestic market. The share debuted at Rs 1300 on the stock exchanges, as compared to the issue price of Rs 1080. The scrip touched a high of 22.87% at Rs 1,327 per share. A positive listing was expected as ahead of the market debut, Mankind Pharma shares were trading at a premium of Rs 121 in the grey market.
The GMP indicated the shares are valued 11.2% 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 IPO opened for subscription on 25 April and the issue was fully subscribed at 15.32 times on day 3. Qualified institutional buyers (QIBs) subscribed for 49.16% of their reserved portion, demonstrating high interest in the issue. The portion for retail investors was undersubscribed as investors bid only 0.92 times of the shares reserved for RIIs. The NII portion garnered 380% bids so far.
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 lower/upper band of Rs 1,026/1,080, the company is valued at P/E multiple of 30.3x/31.9x respectively based on 9MFY23 annualized earnings. The IPO looks fairly valued across various valuation parameters when compared with its close peers. The investors can ‘Subscribe’ to the IPO for a long term investment perspective,” said SBI Securities.
“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.