Mankind Pharma, a pharmaceutical company, has received a 14% subscription for its initial public offering (IPO) on the first day of sale. The National Stock Exchange (NSE) has reported bids for 40.57 lakh shares against 2.80 crore shares offered. Retail Individual Investors (RIIs) subscribed to 10% of the category and non-institutional investors subscribed to 33%. The Qualified Institutional Buyers (QIBs) category received an 8% subscription.
The company’s IPO is completely an offer for sale (OFS) of 40,058,844 equity shares by promoters and other existing shareholders. The OFS will include promoters Ramesh Juneja, Rajeev Juneja, and Sheetal Arora, along with Cairnhill CIPEF, Cairnhill CGPE, Beige Limited, and Link Investment Trust. The price band for the IPO is set between Rs 1,026-1,080 per share. At the upper end of the price band, the IPO size is estimated at Rs 4,326 crore. Since the IPO is entirely 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 involved in developing, manufacturing, and marketing a wide 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 JP Morgan India are the book-running lead managers to the issue.
The equity shares of the company will be listed on May 9 on both the Bombay Stock Exchange (BSE) and NSE. Investors are keeping a close watch on the subscription rate for this IPO, as it is one of the most significant pharma IPOs in recent years. The demand for healthcare products has seen a significant uptick since the COVID-19 pandemic, and the pharma industry has been at the forefront of the battle against the virus. With the successful listing of Mankind Pharma’s equity shares, investors will be able to participate in the growth potential of the pharma industry in India.
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