Mankind Pharma IPO: Today is the last day to apply for the public issue worth Rs 4,326.36 crore; Should you Buy?
Mankind Pharma IPO Day 3: Today is the last chance to subscribe to the initial public offering ((IPO) of Mankind Pharma Ltd. The public offer opened for subscription on 25th April 2023 and it will remain open for bidding till 27th April 2023.
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Mankind Pharma develops and manufactures a diverse range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.
Day 2: Mankind Pharma IPO Subscription Data (as of 05:00 PM Apr 26, 2023)
QIB – 1.86x,
NII – 1.02x – {(NII 10L+) – 1.21x, (NII 2L-10L) – 0.64x},
Retail – 0.25x
Total – 0.87x
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Mankind Pharma IPO Price
The company has fixed Mankind Pharma IPO price band at Rs 1026 to Rs 1080 per equity share.
Mankind Pharma IPO Offer Size
The maiden public comprises only an offer for the sale of over 4 crore equity shares by promoters and investors, while there is no fresh issue portion.
The total fundraising by the company would be Rs 4,110.03 at the lower price band, and Rs 4,326.35 crore at the higher band.
Promoters Ramesh Juneja, Rajeev Juneja, and Sheetal Arora will be offloading over 1 crore shares via offer for sale, and the rest of the shares in the OFS will be sold by investors Cairnhill CIPEF, Cairnhill CGPE, Beige, and Link Investment Trust.
Mankind Pharma IPO Objectives of Issue
The main objectives of the offer would be to carry out the offer for sale by the selling shareholders and achieve the benefits of listing the equity shares on the stock exchanges.
All the money raised via public issues will go to selling shareholders, and the company will not receive funds from the offer.
Read More:-Mankind Pharma IPO to open for subscription on 25 April. Details here
Mankind Pharma IPO Financial
The pharmaceutical company, which comes with a market capitalisation of Rs 43,264 crore, has reported a consolidated profit of Rs 996.4 crore for the nine-month period ended December FY23, falling 20 percent compared to year-ago period impacted by lower other income, higher employee cost and weak operating performance.
Consolidated revenue for 9MFY23 grew by 10.6 percent year-on-year to Rs 6,697 crore, while on the operating front, it has recorded nearly 13 percent YoY drop in EBITDA (earnings before interest, tax, depreciation and amortisation) at Rs 1,484 crore with margin falling 598 basis points compared to corresponding period last fiscal.
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Mankind Pharma IPO GMP today
According to market observers, Mankind Pharma IPO GMP (grey market premium) today is Rs 70, which is Rs 20 lower from its Wednesday’s GMP of Rs 90 per share.
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Should you Subscribe to Mankind Pharma IPO on Day 2?
Most analysts are positive about the company given its strong brand reputation and the opportunity areas for growth despite not-so-cheap valuations.
Giving ‘subscribe’ tag to Mankind Pharma IPO, Canara Bank Securities said, “The company has consistently outperformed IPM value growth and has 3rd highest average annual contribution from volume growth. The company is gradually increasing its R&D expenditure. The company also has strong market share in the brands of consumer healthcare segment and looking to further expand the segment. It also plans to expand in new chronic therapeutic areas. The company has grown its revenues at a CAGR of 15% for FY20-22 with EBITDA margin in the range of 25-27%. The 9MFY23 was impacted on account of high API prices, one off because of acquisition and rise in hiring of MRs. The company is net debt free with working capital of 45-50 days . The company seems fairly valued in comparison to its peers considering its decent return ratios. We recommend to SUBSCRIBE for long term.”
“Looking at the price band, ask valuations look a bit expensive compared to other listed companies like Cipla, Zydus Life,” Prashanth Tapse, Senior Vice President (Research), Mehta Equities, said.
“The 100 per cent OFS is going to be a worry for a conservative investor in this market scenario as in the past, we have seen that investors don’t like or prefer to be invested in a higher OFS IPO,” it added.
Giving ‘buy’ tag to Mankind Pharma IPO, Choice Broking says, “In terms of domestic sales, Mankind is India’s 4th largest pharmaceutical company and 3rd largest in terms of sales volume for the 12-month period (TTM) ending Dec. 2022. It is a domestic focused pharma formulation company with a value market share of 4.3% and volume share of 5.6% in the IPM. Apart from developing, manufacturing and marketing pharma formulations, the company also manufactures and develops several consumer healthcare products.”
