Mankind Pharma IPO opened for subscription on 25 April and the issue has been fully subscribed at 15.32 times on day 3. Qualified institutional buyers (QIBs) subscribed for 49.16% of their reserved portion, demonstrating high interest in the issue. The portion for retail investors remains undersubscribed as investors bid only 0.92 times of the shares reserved for RIIs. The NII portion garnered 380% bids so far. The IPO closed for subscription today and these are provisional numbers.
Mankind Pharma shares’ GMP fell to Rs 30 on Thursday, compared to Rs 92 per equity share on Monday. The GMP indicated the shares are valued 2.78% over the upper end of the share price on offer. The price band for its public issue at Rs 1,026-1,080 per equity share of face value Re 1 each. At the upper end of the price band, the company’s promoters and shareholders seek to raise Rs 4,326.35 crore from the IPO.
“At lower/upper band of Rs 1,026/1,080, the company is valued at P/E multiple of 30.3x/31.9x respectively based on 9MFY23 annualized earnings. The IPO looks fairly valued across various valuation parameters when compared with its close peers. The investors can ‘Subscribe’ to the IPO for a long term investment perspective,” said SBI Securities.
“Considering under-penetration of healthcare services and lower consumer expenditure in healthcare in India, MPL’s focus on chronic therapeutic areas, emphasis on increasing penetration in metro and Class I cities, growth in consumer healthcare business, good financial performance and strong distribution network, we assign a “Subscribe” rating on a long term basis,” said Geojit Financial Services, recommending investors subscribe to the issue.