The company’s Rs.4,326 crore IPO is the largest issue in a year and the largest by a pharmaceutical company after Gland Pharma, which raised Rs.6,480 crore from the IPO in 2020.
Mankind Pharma shares made a strong debut on Tuesday, May 9th on the NSE and BSE stock exchanges. On both the NSE and BSE, Mankind Pharma was listed at Rs 1,300 per share against the issue price of Rs 1,026-1,080 per share, representing a 20.4 per cent premium on the issue price.
The pharmaceutical and consumer health company’s initial public offering (IPO), valued at over Rs 4,300 crore, opened for subscription on April 25 and closed on April 27.
The company’s Rs.4,326 crore IPO is the largest issue in a year and the largest by a pharmaceutical company after Gland Pharma, which raised Rs.6,480 crore from the IPO in 2020.
The IPO drew 15.32 subscriptions on the last day of the offering. The qualified institutional buyers (QIBs) category received 49.16 subscriptions, the retail investors (RIIs) portion received 0.92 subscriptions and non-institutional investors 3.8 subscriptions.
Kotak Mahindra Capital Company Limited, Axis Capital Limited, IIFL Securities Limited, Jefferies India Private Limited and JP Morgan India Private Limited were the lead managers for the problem.
The IPO is strictly an offer to sell, or OFS, meaning the company will not receive any proceeds from the offering. After the listing, the promoters will own 78 percent of the shares, while private equity will own 12 percent.
Ahead of the IPO, Mankind Pharma raised Rs.
Of the 77 anchor investors, 44 are domestic mutual fund houses that have participated in the anchor round through various programs. Notable domestic fund houses that have participated include HDFC Mutual Fund, SBI Mutual Fund and ICICI Pru MF.
Mankind Pharma, the fourth largest pharmaceutical company in terms of domestic sales, is the maker of popular brands like Manforce, PregaNews and Unwanted 72, which have gained immense popularity among consumers. 98 percent of the company’s sales come from India. Pharma accounts for 90 percent of total sales, while consumer health accounts for 9-10 percent of sales.
Tier 2-4 cities and rural areas account for 47 percent of sales, while industry accounts for 37 percent. The main USP of the company is affordability and accessibility. The products are priced 15-20 percent cheaper.
The company reported a compound annual growth rate of 16 percent in FY20-FY22 compared to Indian pharma growth of 11 percent.
Initial Release: May 9, 2023 10:00 AM IST
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