Mankind Pharma IPO Day 2- Issue subscribed 87%; QIBs, NIIs overbid for their portion

Mankind Pharma IPO Day 2: Issue subscribed 87%; QIBs, NIIs overbid for their portion

Mankind Pharma IPO opened for subscription on 25 April and the issue has been booked 0.87 times on day 2, with total bids of 2,45,19,352 shares. Qualified institutional buyers (QIBs) subscribed for 186% of their reserved portion, demonstrating high interest in the issue. Retail investors bid only 0.25 times of the shares reserved for RIIs. The NII portion garnered 102% bids so far. The IPO closes for subscription on Thursday, 27 April.

Mankind Pharma shares’ GMP fell to Rs 30 on Wednesday, 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 the upper price band of Rs 1,080, MPL is available at a P/E of 30x (FY22), which appears reasonably priced compared to peers. 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.