Mankind Pharma IPO Opens for Subscription, GMP Rises; Should you subscribe to a Rs 4500 crore public issue?

Mankind Pharma IPO: The IPO of Mankind Pharma, valued at Rs 4,300 crore, opened for public subscription today Tuesday 25th April and will close on Thursday 27th April. The tender for anchor investors ended on Monday. Prior to the public offering, the GMP of Mankind Pharma shares rose to Rs 92 per share, 8.5% above the upper end of the offered share price. The price range for the public offering is Rs 1,026-1,080 per share share with par value Re 1 per share. At the higher end of the price range, the company’s founders and shareholders aim to raise Rs 4,326.35 crore from the IPO.

The IPO is entirely an offer to sell (OFS) of 40,058,844 shares by promoters and other existing shareholders. The company will not receive any proceeds from the issue, the entire amount will go to the shareholders. The shares are expected to be credited on May 8 and listed on the stock market on May 9, according to reports.

Mankind Pharma is engaged in the development, manufacturing and marketing of a wide range of pharmaceutical formulations in various acute and chronic therapeutic areas, as well as several consumer healthcare products. The drugmaker works across a range of acute and chronic therapeutic areas including anti-infective, cardiovascular, gastrointestinal, antidiabetic, neuro/CNS, vitamins/minerals/nutrients and respiratory.

ICICI Securities: Subscribe

“Humanity has consistently outperformed the IPM and experienced regular, steady growth. Its brands have enabled them to consistently generate the highest proportion of drug prescriptions in IPM from FY18 to FY22. Additionally, they ranked second by market share for MAT December 2022 in the markets covered. As it is heavily focused on India as a geographic region, it is less likely to face medium-term headwinds such as over-competition in regulated markets such as the US and Europe, Currency risks, economic slowdown/recession experienced that the global players are facing.”

Geojit Financial Services: Subscribe

“In the upper price range of Rs 1,080, MPL is available at a P/E of 30x (FY22) which looks cheap compared to its peers. Considering under-penetration of healthcare services and lower consumer healthcare spending in India, we attribute MPL’s focus to chronic therapeutic areas, emphasis on increasing penetration in Metro and Class I cities, growth in consumer healthcare business, good financial performance and a strong distribution network to a “subscribe” rating on a long-term basis.”

Asit C Mehta Investment Intermediates: Subscribe Long Term

“Humanity benefits from the industry experience and business acumen of their individual promoters and is driven by the three core values ​​of Quality, Affordability and Accessibility. Their professional and experienced management team has been instrumental in building their brands, growing their operations and maintaining capital efficiency despite their emphasis on affordable product offerings. In the upper price range of Rs.1,080, the stock is trading at a valuation of 32.56 times its FY23E EPS of Rs.33.16. We therefore recommend subscribing to the issue long-term.”

Canara Bank Securities: Subscribe Long Term

“Mankind Pharma is India’s fourth largest pharmaceutical company by domestic sales. The company has 98% of revenue from India. The company gradually increases its R&D expenditure. The company also has a strong market share in the branded consumer health segment and is looking to continue growing the segment. There are also plans to expand into new chronic therapeutic areas. The Company has grown revenue at a CAGR of 15% for FY20-22 with an EBITDA margin in the range of 25-27%. The 9MFY23 was impacted due to high API prices, one off due to the acquisition and increase in hiring of MRs. The company is debt free with net working capital of 45-50 days. The company appears fairly valued given its decent yield ratios compared to its peers. We recommend a long-term subscription.”

(The recommendations in this article are provided by the respective research analysts and brokerage firms. FinancialExpress.com takes no responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment adviser before investing.)