Mankind Pharma stock runs up in trade after listing at 20% premium

Mankind Pharma stock runs up in trade after listing at 20% premium
Mankind Pharma
  • Mankind Pharma listed at a 20% premium, beating grey market expectations.
  • The market capitalisation of the company stands at ₹57,045 crore.
  • The grey market had indicated a premium of 10% over the IPO price.
After listing at a 20% premium, condom manufacturer Mankind Pharma’s stock ran up 9.5% on Tuesday.

In all, its first day’s closing price at ₹1,424, was 32% higher than its issue price. Its issue price was at ₹1,080 per share.

Thanks to its stellar debut, Mankind Pharma entered the list of top 100 companies as per market capitalisation, on BSE and NSE. It beat the likes of Canara Bank, UPL, Hero MotoCorp, Zomato to enter the stock exchanges at rank 86, with a marketcap of ₹57,045 crore.

The market rally during the day that led to Sensex crossing the 62,000 level for the first time since December 2022, also aided the debut.

As many as seven companies listed on the exchanges this year, and Mankind Pharma has provided the best listing gains amongst them all. An investor in the IPO would have gained ₹344 per one stock by the end of the day.


Beating the grey market
The listing gains were above expectations as the grey market indicated a premium of 10% to the IPO price. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.

The ₹4,326 crore IPO generated good demand from investors, with the issue being subscribed 15.32 times. The qualified institutional buyer portion was subscribed the most at 49.16 times.

The portion reserved for retail witnessed weak demand as it was subscribed just 0.92 times, while that of the non-institutional investors was subscribed 3.8 times.The IPO was a complete offer for sale (OFS) of over 4 crore equity shares by the promoters and existing shareholders of the company. The company will not receive any proceeds from the offer.
IPOs in 2023Issue price Listing day gainCurrent market price
Radiant Cash Management ₹94₹10.70₹95.15
Sah Polymers₹65₹24.25 ₹76.01
Divgi TorqTransfer Systems₹590₹15.15₹636.40
Global Surfaces ₹140 ₹30.90 ₹214
Udayshivkumar Infra₹35 -₹1.61 ₹30
Avalon Technologies ₹436 -₹38.55 ₹355
Source: BSE

The company manufactures a diverse range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.

Its wide range of offerings include condoms, pregnancy detection kits, emergency contraceptives, antacid powders, vitamin and mineral supplements and anti-acne preparations.
Financials of some famous brands owned by company Domestic sales (Dec 2022)% market share
Manforce (condom)₹461 crore 29.6%
Prega News (pregnancy detection kit) ₹184 crore 79.7%
Unwanted-72 (emergency contraceptives)₹108 crore 61.7%

It has 25 manufacturing facilities across Himachal Pradesh, Sikkim, Rajasthan, Andhra Pradesh, Maharashtra and Uttarakhand.

The company says that after India, its major markets are the US, Bangladesh, Sri Lanka and Nepal. Any developments in the pharmaceutical industry in these regions could impact on its business operations.

The company is also looking to acquire brands and diversify its therapeutic portfolio.

“We aim to deepen our presence in our existing markets and facilitate our entry into new markets. We intend to strategically acquire brands and companies across key markets as well as explore in-licensing and co-development opportunities with other companies to diversify our therapeutic portfolio,” the company said in its DRHP.

Its products are sold in 20 countries, including the US, Latin America, Southeast Asia, Africa, the Middle East and the Commonwealth of Independent States (CIS).

Mankind Pharma’s profitability has grown over 37% in the last three financial years.
Year Revenue from operations Net profit
FY22₹7,781 crore ₹1,452 crore
FY21₹6,214 crore ₹1,293 crore
FY20₹5,865 crore ₹ 1,056 crore

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From ₹68 to ₹140, this multibagger stock marks a strong journey in 2023