Mankind Pharma’s initial public offering subscribed 87% on day 2 of issue

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Mankind Pharma’s IPO was 87 percent subscribed Wednesday on the penultimate day of the release. Institutional investors oversubscribed 1.86 times, wealthy investors oversubscribed 1.02 times, and individual investors oversubscribed 25 percent.

Mankind Pharma on Monday allocated shares worth Rs 1,298 crore to 77 anchor investors including 16 local mutual funds that participated through 41 schemes.

The company has priced its initial public offering (IPO) between Rs 1,026 to Rs 1,080 per share. The IPO of Rs 4,326 crore is an entirely secondary sale of shares by the promoters, global private equity firm Cairnhill and some other investors in the company.

The subscription will end on April 27. Bids may be submitted for a minimum number of 13 shares and multiples of 13 shares thereafter.

Mankind is the fourth largest pharmaceutical company in India by domestic sales and the third largest by sales volume.

The company is engaged in the development, manufacture and marketing of pharmaceuticals as well as various consumer healthcare products. The company is focused on the domestic market and as a result, its revenue from operations in India contributed 97.60 percent of its total revenue from operations for the 2021-22 financial year.

The company entered the consumer healthcare industry in 2007 and has since created several different brands in condoms, pregnancy detection, emergency contraceptives, antacid powders, vitamin and mineral supplements, and acne-fighting lotions.

The company sells the Manforce brand of condoms, which has a 30 percent market share, and the Prega News pregnancy test kit has 80 percent of the market share.

The Company operates 25 manufacturing facilities across the country and has 4,121 manufacturing employees as of December 31, 2022. The total production capacity of its formulation manufacturing facilities is 42.05 billion units annually across a wide range of dosage forms including tablets, capsules, syrup, vials, ampoules, Blow-up fillers, hard and soft gels, eye drops, creams, contraceptives and other over-the-counter products.

Kotak Mahindra Capital, Axis Capital, IIFL Securities, Jefferies India and JP Morgan India are the lead managers for the offering.