Mankind Pharma closed its maiden public issue on a strong note, getting subscribed over 15 times. Now all eyes will be on its share allotment which will be announced next week on May 3.
The pharmaceutical company has received a robust response to its initial public offering from qualified institutional investors, who have bid 49.16 times the allotted quota, while high net-worth individuals have bought shares 3.8 times the reserved portion. However, the response from retail investors remained tepid, with only 92 percent of reserved shares subscribed.
As a result, the offer has received bids for 42.95 crore equity shares subscribing 15.32 times during April 25-27.
The company also received a good response in the anchor round with 16 MF schemes and names like CPPIB, Abu Dhabi Investment Authority, Goldman Sachs, Fidelity, Blackrock, GIS and Nomura participating.
The Rs 4,326-crore public issue was entirely an offer for sale by promoters and investors. Hence all the money will go to the selling shareholders, and the company will not receive funds from this offer.
The price band for the offer was Rs 1,026-1,080 per share and the final offer price is expected to be at the upper end of the price band.
Investors in the Mankind Pharma IPO can check their share allotment status either on the BSE website or the portal of the IPO registrar, by following a few easy steps.
In case of IPO registrar website,
a) Select IPO "Mankind Pharma Limited"
b) Select and accordingly enter either "Application number", "Demat account number", or "PAN number"
c) Finally enter "Captcha" and click on "Submit" button
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Alternatively on the BSE portal,
a) Select "Issue Type" and "Issue Name"
b) Enter either "Application number" or "PAN number"
c) Check the box "I'm not a robot" and click on the "Search" button
The refunds will be credited to bank accounts of unsuccessful investors by May 4 and the equity shares will be transferred to demat accounts by May 5.
Mankind Pharma, which will make its grand debut on the BSE and NSE on May 8, traded at around 3-5 percent premium in the grey market over the expected final issue price of Rs 1,080 per share, analysts said. The grey market is an unofficial platform for trading in IPO shares.
Mankind is a major player in pharmaceutical products with a domestic focus which contributed 98 percent to total revenue in FY22. The company has 25 manufacturing facilities across India and has a huge distribution and marketing presence.
Some of its popular brands include Manforce, Prega news, Gas O Fast, Nurokind, and Telmikind. The company is also making strides in various acute and chronic therapeutic areas.
"The company has shown significant expansion in topline and bottomline over the last many years. If we annualize the earnings of FY23, the issue is priced at a PE of around 32.1 times," Divam Sharma, Founder of Green Portfolio PMS said.
Also read: Only four IPOs in March quarter but India leads in share sale by large corporates - EY
The pharmaceutical company enjoys a market capitalisation of Rs 43,264 crore at the higher end of the price band. Its consolidated profit in the nine-month period ended December FY23 at Rs 996.4 crore fell 20 percent compared to the corresponding period last fiscal impacted by weak operating performance.
Consolidated revenue for the same period increased by 10.6 percent year-on-year to Rs 6,697 crore, while it has reported a nearly 13 percent YoY decline in EBITDA (earnings before interest, tax, depreciation and amortisation) at Rs 1,484 crore with a margin falling 598 basis points compared to the corresponding period last fiscal.
"The current grey market premium suggests a 3-5 percent listing gains for Mankind Pharma. The IPO looks fully priced from listings gain standpoint," he said.
Investors with a horizon of over 1-2 years can consider investing in the company, he advised.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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