Little Retail Investor Interest In Mankind Pharma IPO

The apathy among retail investors left the retail quota of the company’s IPO book 8% unsubscribed.

The IPO was open from Tuesday to Thursday, where shares were offered at ₹1,026 -1,080 per share.

Mankind Pharma, which created well-known condom brand Manforce Condoms, pregnancy test kit Prega News, and emergency contraceptive brand Unwanted-72, plans to raise ₹4,326 crore through the IPO that was launched during a lull in the primary market. The IPO entails an offer for sale (OFS) of up to 40.06 million shares by its current shareholders and promoters.

OFS includes about 3.71 million shares by Ramesh Juneja, 2.80 million shares by Sheetal Arora, 3.51 million shares by Rajeev Juneja, 17.41 million by Cairnhill CIPEF Ltd, 9.96 million shares by Beige Ltd, 2.62 million shares by Cairnhill CGPE Ltd, and 50,000 shares by Link Investment Trust.

The IPO saw sufficient demand from qualified institutional buyers (QIB), with the quota being subscribed 49.16 times. At close, IPO was overall oversubscribed 15.32 times.

This was expected because just before IPO opening, Mankind Pharma mopped up ₹1,297.9 crore from anchor investors like Government of Singapore, among others.

There were 77 anchors who were allotted a total of 12 million shares at a price of ₹1,080 per share before the IPO was opened for the public.

Mankind Pharma is the country’s fourth largest pharmaceutical firm in terms of domestic sales and second largest in terms of sales volume for the fiscal year 2022.

Mankind Pharma’s shares will be listed on exchanges on 9 May 2023.

The company’s revenue from operations has grown at a CAGR of 15.2% during FY20-2022 to ₹7,782 crore from ₹5,865 crore.