Mankind Pharma IPO Day 2: Offer subscribed 87%, QIB portion fully booked

The maiden public issue will fetch the pharma company's shareholders Rs 4,326.36 crore at the upper end of the price band of Rs 1,026-1,080 per share.

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The initial public offering (IPO) of Mankind Pharma has garnered bids for 2.45 crore equity shares against an offer size of 2.8 crore shares, amounting to 87 percent subscription, on April 26, the second day of bidding. The issue was subscribed 14 percent on the opening day.

Retail investors have bid for 25 percent of the share set aside for them.  Thirty-five percent of the IPO has been reserved for retail investors.

High net-worth individuals (HNIs) have bought 61.47 lakh shares against their quota of 60 lakh shares, while qualified institutional buyers (QIBs) have bid for 1.48 crore shares, so far, against 80.11 lakh shares reserved for them.

Also Read: Mankind Pharma's Rs 4,326-cr public issue keeps analysts upbeat on local flavour

Half of the public issue size is reserved for QIBs and 15 percent for HNIs.

The public issue, which is an offer for sale (OFS), is expected to fetch the pharma company's selling shareholders Rs 4,326.36 crore at the upper end of the price band of Rs 1,026-1,080 a share.

"Looking at the price band, ask valuations look a bit expensive compared to other listed companies like Cipla, Zydus Life," Prashanth Tapse, Senior Vice President (Research), Mehta Equities, said.

"The 100 percent OFS is going to be a worry for a conservative investor in this market scenario as in the past, we have seen that investors don't like or prefer to be invested in a higher OFS IPO."

Mankind Pharma is the fourth largest domestic pharma company by market share in India, focussing on the development of a diverse range of pharma products across acute and chronic therapies, along with various consumer healthcare products including marquee brands like Manforce, Prega News, Gas-O-Fast and Unwanted Kit.

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