Mankind Pharma shares debuted at a 20% premium on Dalal Street today. The stock of India’s fourth largest pharmaceutical company got listed at Rs 1,300 on BSE and NSE, against the issue price of Rs 1,080. The stock hit an intraday high of Rs 1,340 in early trade.
Mankind Pharma IPO received a strong response from the investors. 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 Rs 4,326 crore via its maiden stake sale.
Mankind Pharma IPO was subscribed 15.32 times during May 25-27, with QIBs applying for 49.16 times the allotted quota of shares. The portion set aside for high-net-worth individuals (HNIs) was subscribed 3.8 times and the retail investor part was booked 92%.
Mankind IPO was entirely an offer for sale by promoters and investors. Hence the entire money has been received by selling shareholders, and the company did not get money from the share sale.
Ahead of listing, Mankind Pharma IPO shares traded at 8-11% in the grey market. Mankind Pharma GMP was ranging from Rs 100 - 120 on Tuesday. The stock was expected to list at a 10% premium.
Ahead of Mankind Pharma's listing, global brokerage Macquarie initiated coverage on the stock with an outperform rating and a target price of Rs 1,400 apiece, based on 25 times FY25e PER, at a 20% discount to MNC peers to account for innovative product launch optionality with MNC companies.
"Mankind Pharma has strong fundamentals and it is already attracting outperforming ratings from global brokerage Macquarie. Our recommendation for the IPO was to subscribe, and we maintain a bullish view of the stock, advising investors to hold it for the long term. However, investors who applied for listing gains may either choose to exit or hold it with a stop loss at the issue price," said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Mankind Pharma, which manufactures the popular condom brand Manforce Condoms, pregnancy test kit Prega News, and emergency contraceptive brand Unwanted-72, is supported by private equity firm Chrys Capital and Capital International. It has a pan-India marketing presence.
Mankind Pharma has over 36 brands, including Manforce (Rx), Moxikind-CV, Amlokind-AT, Unwanted-Kit, Candiforce, Gudcef, Glimestar-M, Prega News, Dydroboon, Codistar, Nurokind-Gold, Nurokind Plus-RF, Nurokind-LC, Asthakind-DX, Cefakind, Monticope, Telmikind-H, Telmikind, Gudcef-CV, and Unwanted-72, among them.
Mankind Pharma's domestic sales grew at 1.3 times the rate of the Indian pharmaceutical market between the financial year 2020 and December 2022 which looks decent, according to Hem Securities’ Astha Jain.
Mankind Pharma recorded a 20% YoY decline in consolidated profit at Rs 996.4 crore for the nine-month period ended December 2022, with a nearly 13% drop in EBITDA at Rs 1,484 crore. Company's EBITDA margin fell 598 bps compared to the corresponding period last fiscal, but consolidated revenue grew 10.6% YoY to Rs 6,697 crore in the same period.
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