The initial public offering (IPO) of Mankind Pharma, one of the largest pharma firms in India, was subscribed 87 percent as of 5:30 pm on the second day of the issue after seeing a muted response on the first day of the sale. Bids for 2,45,19,352 shares were received against 2,80,41,192 shares on offer, according to an update shown on the NSE on Wednesday.

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The portion for Retail Individual Investors (RIIs) got subscribed 0.25 times or 25 per cent while the category for Non-Institutional Investors (NIIs) received 1.02 times, or 102 percent subscription. The quota for Qualified Institutional Buyers (QIBs) got subscribed 1.86 times or 186 percent.

The Delhi-based pharmaceutical and healthcare products maker has set aside 35 percent of the net offer for individual investors, 50 percent for QIBs, and 15 percent for NIIs.

GMP and other details here

According to market observers, Mankind Pharma shares are commanding a premium (GMP) of Rs 65 in the grey market today, down from Rs 90 the previous day.

The initial share sale of Mankind Pharma opened for public subscription on April 26. The issue will be available for the public to bid till April 27. At Rs 4,326 crore, this will be the first biggest IPO in terms of the issue size.

The drug maker has fixed a price band of Rs 1,026-1,080 per share with a lot size of 13 equity shares with a face value of Re 1 each. At the upper end of the price band, the IPO size is estimated at Rs 4,326 crore.

The company's IPO is entirely an offer for sale (OFS) of 40,058,844 equity shares by promoters and other existing shareholders.

Since the IPO is completely an OFS, the company will not receive any net proceeds from the issue and the entire net proceeds will go to the selling shareholders.

On day one, the IPO was subscribed 14 percent as of 5 pm, with institutional investors subscribing 0.08 times, non-institutional investors subscribing 33 percent, and retail investor portion saw a 10 percent subscription.

Kotak Mahindra Capital Company, Axis Capital, IIFL Securities, Jefferies India and JP Morgan India are the book-running lead managers to the issue.

The shares of the company are expected to list on the leading stock exchanges BSE and NSE on May 9, 2023.

First Published:Apr 26, 2023 1:07 PM IST