Mankind Pharma shares make solid market debut, list at 20% premium over issue price

Mankind Pharma made a strong debut at Dalal Street as shares of the pharmaceutical company were listed at Rs 1,300 on BSE, a premium of 20 per cent, against the issue price of Rs 1,080. The drug and consumer-health product maker kicked off its maiden trading session at the same rate on the National Stock Exchange (NSE).

Ahead of its listing, Shares of Mankind Pharma were commanding a premium of Rs 140-150 in the grey market, suggesting double digit gains for the investors over the issue price. However, its premium stood around Rs 100-110 in the previous week as the broader markets turned volatile.

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The offering garnered significant interest from investors, especially in the QIB category. The grey market premium saw an increase, particularly after the share allotment. Therefore, a profitable listing was anticipated but it was majorly dependent on overall sentiments of the market, said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart.

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.

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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 as the company raised 4,326 crore via its maiden offering.

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.

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