The institutional investor portion of the IPO was subscribed nearly 50 times, the high net worth individual (HNI) quota garnered 3.8 times subscription, while the retail investor portion was subscribed just 92 per cent.
Anchor investors had subscribed to shares worth nearly Rs 1,300 crore of Mankind Pharma, the fourth largest pharma company in India in terms of sales.
Mankind had set a price band of Rs 1,026-1,080 per share for the IPO. At the top end, the company will be valued at Rs 43,264 crore, about 30 times its FY22 earnings. The valuations were in line with other listed pharma players.
The company sells the Manforce brand of condoms, which has a 30 per cent market share, while its pregnancy test kit Prega News commands 80 per cent of the market.
“Mankind Pharma benefits from its strong foothold in domestic branded formulations with emphasis on affordable product offerings. We assign ‘subscribe’ rating on the back of opportunities from its newer acquired products, and its plan to backward integrate in its power brands, and structural preference for domestic branded formulations, among broader health care themes,” ICICI Direct had said in a note.