On May 9, Mankind Pharma shares listed for Rs 1300 on the NSE and BSE, a 20% premium to the issue price of Rs 1,080.
Since Gland Pharma’s Rs 6,480-crore IPO in 2020, the Rs 4,326-crore IPO was the largest by a local drugmaker in 2023.
Mankind Pharma sells consumer healthcare and medications. Anubhuti Mishra, Equity Research Analyst, Swastika Investmart, said the IPO, a complete offer for sale (OFS), was fully priced with a P/E valuation of 30 times.
The greatest 2023 IPO’s share price was Rs 1,026-1,080.
“The stock was trading at a premium of Rs 105 (9.72 percent) in the grey market, which saw an increase, particularly after the share allotment on May 3, 2023,” she told Moneycontrol, predicting a prosperous listing. She said that market sentiment will determine listing success.
The grey market trades shares before the IPO and bourse listing. Tracked to estimate listing pricing.
The IPO was subscribed over 15 times, with qualified institutional investors bidding 49.16 times their quota and high net-worth individuals buying 3.8 times theirs. Retail investors bought 92% of their share allotment.
The anchor round attracted 16 MF schemes including CPPIB, Abu Dhabi Investment Authority, Goldman Sachs, Fidelity, Blackrock, GIS, and Nomura.
The issue finances selling shareholders, not the corporation.
The company’s consolidated profit fell 20% to Rs 996.4 crore in the nine months ended December FY23 due to unsatisfactory operating performance.
Consolidated revenue rose 10.6% to Rs 6,697 crore, but EBITDA (earnings before interest, tax, depreciation, and amortisation) fell nearly 13% to Rs 1,484 crore, with a margin falling 598 basis points.