Mankind Pharma Shares Make Blockbuster Market Debut, Lists 20% Higher Than IPO Price

Mankind Pharma shares made a blockbuster stock market debut on Tuesday. The stock opened for trading at Rs 1,300 on the National Stock Exchange and BSE, marking an upside of 20 per cent from the initial public offering (IPO) price of Rs 1,080. The stock rose as much as 28 per cent to hit an intraday high of Rs 1,385 on the BSE and it touched an intraday high of Rs 1,386 on the National Stock Exchange.

Mankind Pharma shares were in very high demand during the three-day share sale via IPO which concluded on April 27 as the issue was subscribed 15.32 times. The portion reserved for large investors under the Qualified Institutional Buyers (QIB) category was subscribed 49.16 times, shares set aside for Non-Institutional Investors was subscribed 3.8 times and portion set aside for retail investors was booked 0.92 times.

"The company has strong fundamentals and it is already attracting outperforming ratings from global brokerage Macuarie. 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.

Retail investors were allowed to make bids in minimum one lot of 13 shares up to maximum of 14 lots. One lot of Mankind Pharma shares in the IPO was priced at Rs 1,96,560.

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 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.

Kotak Mahindra Capital Company, Axis Capital, IIFL Securities, Jefferies India and J P Morgan India were the managers to the offer.

As of 10:19 am, Mankind Pharma shares traded 27 per cent higher than issue price at Rs 1,368.50.