Mankind IPO was entirely an offer for sale of 40.06 million equity shares by promoters and other existing shareholders.
Mankind Pharma’s shares are currently trading at a premium of a whopping Rs 108 or 10 per cent up in the grey market, over the upper band of Rs 1,080 a share
Mankind IPO GMP: Mankind Pharma’s initial public offering (IPO) was up for public subscription during April 25-27 and got a good response with overall subscription at 15.32 times. The company’s shares are going to list on the BSE and the NSE on Monday, May 8.
Mankind IPO GMP Today
Mankind Pharma’s shares are currently trading at a premium of a whopping Rs 108 or 10 per cent up in the grey market, over the upper band of Rs 1,080 a share. So, the shares in the grey market are currently trading at Rs 1,188 apiece, on May 8. It indicates that the company’s shares are expected to be listed at a good premium over its issue price on May 8, 2023. The premium gets fluctuated based on the sentiments in the markets.
On the company’s IPO price, analysts at brokerage firm Anand Rathi have said, “At the high (Rs 1,080) of the issue price band, the stock is valued at about 30x FY22 EPS of Rs 36. Pharma companies quote at an average P/E of 25x/22x FY24e/FY25e. We expect the company’s strong set of brands, focused approach to its chronic portfolio via recent acquisitions, launches and differentiated pipeline products to be key positives. However, risks are addition of NLEM lists, rise in raw material prices.”
Mankind Pharma IPO: Basic Details
Mankind Pharma is engaged in developing, manufacturing, and marketing a diverse range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.
It has established several differentiated brands in condoms, pregnancy detection, emergency contraceptives, antacid powders, vitamin and mineral supplements, and anti-acne preparation categories.
It has a pan-India marketing presence and operates 25 manufacturing facilities across the country. As of December 2022, the company had a team of over 600 scientists and a dedicated in-house R&D centre with four units at IMT Manesar, Gurugram (Haryana) and Thane (Maharashtra).
The IPO was entirely an offer for sale (OFS) of 40.06 million equity shares by promoters and other existing shareholders. Its price band was fixed at Rs 1,026-1,080 per share. In the Rs 4,326-crore IPO, a bidder bid for a minimum of one lot and maximum of 13 lots. A lot had Mankind Pharma’s 13 shares.
Mankind’s FY22 revenue grew 25 per cent, volume-driven (17ppts), price hikes (4 per cent ppts) and launches (4ppts), while 9M FY23 growth was 9 per cent. Lower GMs and high costs led to a 23 per cent EBITDA margin in 9M FY23 (FY22: 25.6 per cent). The 9M FY23 EPS slid 20 per cent y/y to Rs 25 (FY22: Rs 36). FCF was Rs 6.3 billion in 9M FY23 (vs a negative Rs 14.2 billion in FY22 due to acquisitions).
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