Mankind Pharma's shares in the grey market were trading at a premium of Rs 100-105, according to market observers a day ahead of its stock market listing on May 9, Tuesday. Mankind Pharma sold shares in price band of Rs 1,026-1,080 during the three-day Initial Public Offering (IPO) which ended on April 27.
Mankind Pharma raised Rs 4,326 crore from the IPO which was purely an offer for sale (OFS) by its promoters Ramesh Juneja, Rajeev Juneja and Sheetal Arora. Besides, Cairnhill CIPEF, Cairnhill CGPE, Beige Limited, and Link Investment Trust.
Since the IPO was completely an OFS, the company will not receive any net proceeds from the issue and the entire net proceeds will go to the selling shareholders.
Mankind Pharma shares were in very high demand during the IPO as the share sale was subscribed 15.32 times subscribed by the last day of the offer.
The portion for Qualified Institutional Buyers (QIBs) was subscribed 49.16 times, while non institutional investors category received 3.80 times subscription and shares set aside for Retail Individual Investors (RIIs) was subscribed 92 per cent.
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.
The equity shares of the company will be listed on both BSE and NSE.
Kotak Mahindra Capital Company, Axis Capital, IIFL Securities, Jefferies India and J P Morgan India were the managers to the offer.
“Mankind Pharma is a well-known and established pharmaceutical company that offers pharmaceuticals as well as several consumer healthcare products. The company has pan-India distribution with a focus on affordability, accessibility, and strong brand recall. In the past three years, the company has demonstrated robust growth in its financial performance, with a near doubling of its net worth and a stable increase in revenue and net profit. Furthermore, the company has strategies to increase its presence in the chronic therapeutic area and grow the consumer healthcare business,” brokerage firm Swastika Investmart had said in a report ahead of the IPO.
