Shares of Mankind Pharma made a remarkable debut on the stock exchanges on Tuesday, listing at Rs 1,300 on the NSE and the BSE with a premium of over 20 per cent against the issue price of Rs 1,080.
The stock began the trade at Rs 1,300, up 20.37 per cent on the BSE and further zoomed 24.53 per cent to Rs 1,366.
The IPO was one of the biggest by a domestic drug maker since Gland Pharma that in 2020 had an issue of Rs 6,480. The IPO is also the biggest so far in the year 2023.
The company commanded a market valuation of Rs 54,816.52 crore.
Mankind Pharma IPO subscription
The initial share sale of Mankind Pharma received 15.32 times subscription last month and received robust response from qualified institutional investors who bid 49.16 times the allotted quota. Interestingly, the shares were bought 3.8 times the portion by high net-worth individuals whereas the retail investors only subscribed to 92 per cent of their share quota.
Mankind also received positive response in the anchor round with 16 mutual fund schemes and other names like Goldman Sachs, Nomura, Abu Dhabi Investment Authority and Blackrock participating.
The company's IPO was entirely an Offer for Sale (OFS) of 4,00,58,844 equity shares by promoters and other existing shareholders and was fully priced with a P/E valuation of 30 times.
Mankind Pharma shares in grey market
Price range for the offer was at Rs 1,026-1,080 a share. Prior to the listing the stocks were trading at a premium of Rs 105 in the grey market, which later went up after the share allotment on May 3, 2023.
What will the company do with the funds raised?
The money that will be raised from the issue will not go to the company but will directly go to the selling shareholders.
Mankind Pharma is engaged in developing, manufacturing and marketing a diverse range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.
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