Pharmaceutical giant Mankind Pharma made its debut on the Indian bourses today, as investors cheered the stock's excellent listing today.
Before the launch of the pharma giant's public issue, it invited several investors to invest in its anchor book. The company raised Rs 1,298 crores as it allotted 1.2 crore shares to its anchor book investors Canada Pension Plan Investment Board, Government of Singapore, Monetary Authority of Singapore, Goldman Sachs, Fidelity, BlackRock, Abu Dhabi Investment Authority, Nomura, and Morgan Stanley.
Moreover, several funds such as HDFC Mutual Fund, SBI Mutual Fund, Axis Mutual Fund, Nippon India Mutual Fund, Aditya Birla Sun Life Mutual Fund, HDFC Life Insurance Company, and SBI Life Insurance Company also participated in the anchor book.
The company's Rs 4,326 crore IPO saw excellent participation from investors, especially QIBs. The QIB portion, which was 20% of the public issue, was oversubscribed 49.16x times! Compared to the QIBs, the HNI and RII portions saw lacklustre participation as their portions were subscribed 3.8x and 0.92x times respectively. This meant that the entire IPO was subscribed 15.32x times!
Although Indian equities are going through some tough times, Mankind Pharma's good long-term prospects, high GMP and overwhelming response resulted in analysts expecting the stock to show listing gains of around 10%.
When the stock of Mankind Pharma was listed on the bourses today at 9:30, the stock smashed all estimates as it was listed at Rs 1,300 i.e. a premium of 20.4%!
It continued growing throughout today's session. Although the move slowed down around noon, the stock resumed climbing as it closed at its highest intraday price of Rs 1422.30 per share, translating to a 31.7% listing day gain!
If an investor invested in the IPO for an initial investment of Rs 14,040 (Rs 1080 x 13 shares) would've grown to Rs 18,490 (Rs 1422.30 x 13 shares) in a single session!
Although the stock has good long-term potential due to its strong domestic business, good products and robust distribution network, brokerages are suggesting cautious investors to not hold the scrip due to its higher valuations.
- Aman Agarwal
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