Key Points of Mankind Pharma IPO Subscription on the First Day:
- Mankind Pharma’s IPO received bids for 1,95,507 equity shares against an IPO size of 2.8 crore shares, subscribing to 1 percent on April 25, the first day of bidding.
- The IPO size was reduced to 2.8 crore equity shares from over 4 crore shares after the company mobilized Rs 1,298 crore through the anchor book part of qualified institutional buyers (QIBs) on April 24.
- Retail investors have a reservation of over 35 percent, and they bid for 1 percent shares of the allotted quota.
- High net-worth individuals (HNIs) bought 32,006 shares against the reservation of 60 lakh shares, while QIBs did not place any bids in the offer.
- Half of the public issue size is reserved for QIBs and 15 percent for HNIs.
- The IPO comprises only an offer for sale of over 4 crore shares, and there is no fresh issue portion.
- All the money from the IPO will go to selling shareholders (promoters and investors), and the company will not receive funds from the offer.
- Mankind Pharma is the fourth-largest domestic pharma company by market share in the Indian Pharma Market (IPM).
- The company focuses on the development of a diverse range of pharma products across acute and chronic therapies and also offers various consumer healthcare products, including marquee brands like Manforce, Prega News, Gas-O-Fast, and Unwanted Kit.
- Investors should consider the company’s exposure to government price controls and the fact that the IPO is entirely an offer for sale before making a decision to invest.
Details of Mankind Pharma IPO Subscription on the First Day:
Mankind Pharma’s initial public offering (IPO) received bids for 1,95,507 equity shares against an IPO size of 2.8 crore shares, subscribing to 1 percent on April 25, the first day of bidding. The IPO size was reduced to 2.8 crore equity shares from over 4 crore shares after the company mobilized Rs 1,298 crore through the anchor book part of qualified institutional buyers (QIBs) on April 24.
The IPO has a reservation of over 35 percent for retail investors, and they bid for 1 percent shares of the allotted quota. Meanwhile, high net-worth individuals (HNIs) bought 32,006 shares against the reservation of 60 lakh shares, while QIBs did not place any bids in the offer. Half of the public issue size is reserved for QIBs and 15 percent for HNIs.
Mankind Pharma’s IPO comprises only an offer for sale of over 4 crore shares, and there is no fresh issue portion. Hence, all the money will go to selling shareholders (promoters and investors), and the company will not receive funds from the offer. The bidding for the offer will close on April 27.
With a focus on the development of a diverse range of pharma products across acute and chronic therapies, Mankind Pharma is the fourth-largest domestic pharma company by market share in the Indian Pharma Market (IPM). It also offers various consumer healthcare products, including marquee brands like Manforce, Prega News, Gas-O-Fast, and Unwanted Kit.
For FY22, the India formulations business, which grew at a CAGR of 15 percent during FY20-FY22, contributed nearly 98 percent to its revenue from operations, while the rest came from exports.
However, Prashanth Tapse, Senior Vice President (research) at Mehta Equities, thinks that the price band looks a bit expensive compared to other listed companies like Cipla, Zydus Life. He also believes that the 100 percent OFS (Offer For Sale) is going to be a worry for conservative investors in this market scenario.
Krishna Raghavan, Founder at Unlistedkart, feels that Mankind Pharma’s IPO offers investors an opportunity to invest in a company with a strong presence in the pharmaceutical industry and a diverse product portfolio. However, investors should also consider the company’s exposure to government price controls and the fact that the IPO is entirely an offer for sale before making a decision to invest.
About Mankind Pharma:
Headquartered in Delhi, Mankind Pharma is a pharmaceutical and healthcare products company that offers a range of products in various therapeutic areas such as antibiotics, gastrointestinal, cardiovascular, dermal, and erectile dysfunction medications.
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