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The ₹4,326-crore initial public offering of Mankind Pharma Ltd, which opened for subscription on Tuesday, was subscribed 0.14 times or 14 per cent on Day 1. The issue comes at a price band of ₹1,026-1,080. The issue closes for public subscription on April 27. The marketlot is 13 shares.
The IPO is entirely an offer for sale by promoters and existing shareholders of the company, who will offload about 4 crore shares with a face value of ₹1 each.
The portion set aside for HNIs was subscribed 0.33 times, while retail investors portion saw bids by 0.11 times. The quota set aside for qualified institutional buyers was subscribed 0.08 times.
Selling shareholders
Promoters, Ramesh Juneja will sell 37.05 lakh shares, Rajeev Juneja 35.05 lakh shares, and Sheetal Arora will offload 28.04 lakh shares. The offer also includes selling by investor shareholders: 1.74 crore shares by Cairnhill CIPEF Limited; 26.23 lakh shares by Cairnhill CGPE Limited; 99.64 lakh shares by Beige Limited; and 50,000 shares by Link Investment Trust.
Also read: Mankind Pharma IPO: Why it’s a promising prescription
The offer is being made through the Book Building Process, wherein not more than 50 per cent would be available for allocation on a proportionate basis to qualified institutional bidders.
Anchor investors
Meanwhile, Mankind Pharma, as part of the IPO exercise, on Monday raised ₹1,297.90 crore from anchor investors by deciding to allot 1.20 crore shares at ₹1,080 a share. Among them included Canada Pension Plan Investment Board (4.82 lakh shares), Government of Singapore (4.09 lakh shares), Goldman Sachs (4.82 lakh shares), ICICI Prudential Pharma Healthcare and Diagnostics (4.82 lakh shares), National Pension Service by Blackrock, Ashoka India Opportunities, Government Pension Fund Global, DSP Healthcare Fund, and Nomura Funds - Ireland Public Ltd (3.89 lakh shares each). Overall 77 anchor investors were allotted among them and 42 for domestic MF schemes.
Mankind Pharma Ltd (MPL) is the fourth-largest pharmaceutical company in India by domestic sales and the third-largest by sales volume. With 97 per cent of its revenue from India, MPL sells pharmaceutical formulations and consumer healthcare goods, and operates 25 manufacturing sites and a specialised R&D centre with four divisions.
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