Mankind Pharma IPO GMP: Here's what grey market signals ahead of listing?

Mankind Pharma has been able to hold firm, ignoring the correction in the broader markets. If one goes by the signals from the grey market, the listing contender has been seen standing tall, holding its premium and gearing up to deliver a decent listing pop to the investors. Last heard, Mankind Pharma's shares were commanding a premium of Rs 100-110 in the grey market, a premium of about 10 per cent over its issue price of Rs 1,080. The pharmaceutical company is set to make its debut at Dalal Street on Monday, May 08, even as the listed markets shed over a per cent on Friday. Dealers tracking the grey market said the investors can expect a mild listing pop of 10-15 per cent but one can hold it for a longer run as well. The mega-issue received a strong response from the investors, led by the institutions, while retailers kept off the bay due to hammering of recent pharma and big-ticket IPOs. An avid tracker of unofficial markets on the condition of anonymity said that Mankind Pharma is a decent bet from a defensive space, which was offered at moderate valuations compared to the peers. "The muted response from the retailers and large size of issue were only concerns for the it," he said. Incorporated in 1991, Mankind Pharma develops, manufactures, and markets pharmaceutical formulations across various acute and chronic therapeutic areas and several consumer healthcare products. It has over 36 brands across the segments Including anti-infectives, cardiovascular, gastrointestinal, anti-diabetic, well-being and respiratory. The IPO of India’s fourth largest pharmaceutical company received a strong response from the investors and was overall subscribed 15.32 times. The issue was open for subscription between April 25-27 in the price range of Rs 1,026-1,080 per share. The quota reserved for qualified institutional bidders was subscribed 49.16 times, while the portion for non-institutional bidders was booked 3.80 times. The allocation of retail investors was subscribed merely 92 per cent. SK Hozefa, CEO at Tradeplus said, "Despite FIIs selling during the current year, Mankind Pharma's IPO received positive response from the investors. This shows that investors have a renewed interest and a resilient mindset towards long-term investments, despite the market volatility." It is evident that investors are looking beyond short-term market fluctuations and are instead focusing on the potential for long-term growth and profitability. The success of Mankind Pharma's IPO is a clear indication of this trend, which is a positive sign for the Indian equity market's future, he said.