Shares of Mankind Pharma made a roaring debut on the bourses on May 9, with the scrip listing at Rs 1300 on the NSE and the BSE, a 20 percent premium to the issue price of Rs 1,080 a share.
The price band for the biggest initial public offering (IPO) of 2023, so far, was Rs 1,026-1,080 a share.
The Rs 4,326-crore IPO was also one of the biggest by a domestic drug maker since Gland Pharma came up with its Rs 6,480 -crore issue in 2020 and the biggest of 2023, so far.
Mankind Pharma offers pharmaceuticals as well as several consumer healthcare products. The IPO, which was a complete offer for sale (OFS), was fully priced with a P/E valuation of 30 times, said Anubhuti Mishra, Equity Research Analyst, Swastika Investmart.
Before listing “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, expecting a profitable listing. The success of the listing would ultimately depend on the overall market sentiment, she added.
The grey market is an unofficial trading platform where shares get traded well before the allotment in the IPO and listing on bourses. It is typically tracked to get an idea of the listing prices.
Read more | Mankind Pharma likely to list today with a double-digit premium
The IPO, which was subscribed over 15 times, received a robust response from qualified institutional investors, who bid 49.16 times the allotted quota, while high net-worth individuals bought shares 3.8 times the portion set aside for them. Retail investors were not too enthused and only subscribed to 92 percent of their share quota.
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 money raised through the issue will go to selling shareholders, and the company will not receive funds from the offer.
The company's consolidated profit in the nine-month period ended December FY23 was at Rs 996.4 crore, down 20 percent from the year-ago period impacted by weak operating performance.
Consolidated revenue increased by 10.6 percent year-on-year to Rs 6,697 crore, while the company reported a nearly a 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.
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