Mankind Pharma IPO fully booked despite tepid interest from retail investors

After two days of struggle, the initial public offering (IPO) of Mankind Pharma was subscribed 10.41 times by the noon of April 27, the third and final day of bidding. The rise in subscription numbers was largely due to interest shown by qualified institutional buyers (QIBs), whose bids came in for 29.19 crore equity shares against an offer size of 2.8 crore.

The company had raised ₹1,298 crore through the anchor book route on April 24, after which the issue size was trimmed to 2.8 crore shares from over 4 crore.

According to a MoneyControl report, QIB investors bid 33 times their allotted share. The part set aside for HNIs (high networth individuals) was subscribed 3.05 times. Retail investors, on the other hand, bid for only 66 per cent of the shares allotted to them. 

Also read: Mankind Pharma IPO opens on April 25; here’s all you need to know

Mankind had reserved half of its issue size for QIBs, 15 per cent for HNIs and the balance 35 per cent for retail investors. The ₹4,326.36 crore public issue consists entirely of an offer for sale by promoters and existing investors; that is, no fresh shares were allotted. The price band is ₹1,026-1,080 a share.

Allotment and listing

The IPO share allotment will be finalised on May 3, and the shares will be transferred to the demat accounts of eligible investors by May 5. On May 8, the shares will be listed on the stock exchanges. 

India’s fourth-largest pharmaceutical company in terms of domestic sales, Mankind Pharma produces a wide range of formulations. It caters to various acute and chronic therapeutic areas, and also manufactures consumer healthcare products.