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

The initial public offering of Mankind Pharma was subscribed to 87 per cent on Wednesday the penultimate day of the issue. The institutional investors subscribed  1.86 times, the wealthy investors subscribed 1.02, and retail investors by 25 per cent.

Mankind Pharma on Monday allotted shares worth Rs 1,298 crore to 77 anchor investors including 16 domestic 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 Rs 4,326-crore IPO is an entirely secondary share sale by promoters, global private equity firm Cairnhill and some other investors of the firm.

The IPO will close on April 27.  Bids can be made for a minimum of 13 equity shares and in multiples of 13 equity shares thereafter.

Mankind is the fourth-largest pharmaceutical company in India in terms of domestic sales and the third-largest in terms of sales volume.

The company is engaged in developing, manufacturing and marketing pharmaceutical formulations as well as several consumer healthcare products. The company is focused on the domestic market, and as a result, its revenue from operations in India contributed to 97.60 per cent of its total revenue from operations for the 2021-22 financial year.

The firm entered the consumer healthcare industry in 2007 and has since established several differentiated brands in the condoms, pregnancy detection, emergency contraceptives, antacid powders, vitamin and mineral supplements and anti-acne preparations categories.

The company sells the Manforce brand of condoms which has a 30 per cent market share, while its pregnancy test kit Prega News has an 80 per cent market share.

The company operates 25 manufacturing facilities across the country and had 4,121 manufacturing personnel as of December 31, 2022. Its formulations manufacturing facilities have a total installed capacity of 42.05 billion units per annum across a wide range of dosage forms including tablets, capsules, syrups, vials, ampoules, blow fill seals, soft and hard gels, eye drops, creams, contraceptives and other over-the-counter products.

Kotak Mahindra Capital, Axis Capital, IIFL Securities, Jefferies India, and J.P. Morgan India are the book-running lead managers for the offer.