Mankind Pharma IPO Opens Today: Know Price, GMP, Financials, Review; Should You Subscribe?
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Mankind Pharma IPO Day 1: Mankind Pharma will launch its maiden public offering on Tuesday. Meanwhile, Bid/ Offer Closing Date will be Thursday, April 27, 2023.
During the press conference today, Rajeev Juneja, Managing Director of Mankind Pharma, informed that in the past four years, they have launched 18 more new divisions that majorly focus on the chronic disease segment.
Mankind Pharma develops and manufactures a diverse range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.
Mankind Pharma IPO Dates
The offer will open for public on April 25, while the closing date would be April 27, 2023. The company will open its anchor book, a part of QIB portion, on April 24, a day before opening IPO.
Mankind Pharma IPO Price
The company has fixed Mankind Pharma IPO price band at Rs 1026 to Rs 1080 per equity share.
Mankind Pharma IPO Offer Size
The maiden public comprises only an offer for the sale of over 4 crore equity shares by promoters and investors, while there is no fresh issue portion.
The total fundraising by the company would be Rs 4,110.03 at the lower price band, and Rs 4,326.35 crore at the higher band.
Promoters Ramesh Juneja, Rajeev Juneja, and Sheetal Arora will be offloading over 1 crore shares via offer for sale, and the rest of the shares in the OFS will be sold by investors Cairnhill CIPEF, Cairnhill CGPE, Beige, and Link Investment Trust.
Mankind Pharma IPO Objectives of Issue
The main objectives of the offer would be to carry out the offer for sale by the selling shareholders and achieve the benefits of listing the equity shares on the stock exchanges.
All the money raised via public issues will go to selling shareholders, and the company will not receive funds from the offer.
Mankind Pharma IPO Financial
The pharmaceutical company, which comes with a market capitalisation of Rs 43,264 crore, has reported a consolidated profit of Rs 996.4 crore for the nine-month period ended December FY23, falling 20 percent compared to year-ago period impacted by lower other income, higher employee cost and weak operating performance.
Consolidated revenue for 9MFY23 grew by 10.6 percent year-on-year to Rs 6,697 crore, while on the operating front, it has recorded nearly 13 percent YoY drop in EBITDA (earnings before interest, tax, depreciation and amortisation) at Rs 1,484 crore with margin falling 598 basis points compared to corresponding period last fiscal.
However, for the year ended March FY22, the performance was better, though we have seen operating margin contraction. Profit for financial year 2021-22 increased by 13.3 percent to Rs 1,433.5 crore and revenue rose by 25.2 percent to Rs 7,782 crore compared to previous year.
EBITDA for the financial year 2021-22 at Rs 1,989.35 crore grew by 20.7 percent, but margin dropped 96 bps to 25.56 percent compared to FY21.
Mankind Pharma IPO GMP today
According to market observers, Mankind Pharma IPO GMP today is Rs 90, which is Rs 15 higher from its Monday GMP of Rs 75 per share.
Should you Subscribe to Mankind Pharma IPO on Day 1?
Giving ‘buy’ tag to Mankind Pharma IPO for long term investors, Anubhuti Mishra, Equity Research Analyst at Swastika Investmart said, “The company has strategies to increase its presence in the chronic therapeutic area and grow the consumer healthcare business. However, the pharmaceutical industry is fiercely competitive, and secondly, regulatory risk and stricter norms pose a potential challenge. Coming to the IPO valuation, the issue’s P/E ratio of 30x appears fully priced, and given the pure offer for sale nature of the issue, only high-risk investors are advised to consider a long-term investment in this."
On Mankind Pharma IPO review, domestic Brokerage Geogit said, At the upper price band of Rs 1,080, MPL is available at a P/E of 30x (FY22), which appears reasonably priced compared to peers. Considering under-penetration of healthcare services and lower consumer expenditure in healthcare in India, MPL’s focus on chronic therapeutic areas, emphasis on increasing penetration in metro and Class I cities, growth in consumer healthcare business, good financial performance and strong distribution network, we assign a “Subscribe” rating on a long term basis.
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