Stock of the pharmaceutical company — popular for its Manforce brand of condoms and Prega News pregnancy test kit — closed at Rs 1,430, up Rs 350, or 32.4 per cent over its issue price of Rs 1,080 on the National Stock Exchange, where shares worth Rs 4,480 crore changed hands. This was the best listing day performance of a stock in nearly six months.
The stellar listing day performance comes even as retail investors gave the Rs 4,326-crore initial public offering (IPO) — the largest in more than a year — a miss. The retail portion of the IPO was subscribed 92 per cent. Institutional investors were gung-ho on Mankind’s prospects, with a quota allotted to them seeing 50 times oversubscription.
“Mankind Pharma appears to be well positioned to double its net profit by FY26,” the brokerage said in a note. “We believe continued sales outperformance to the India market, focus on chronic therapies and improved salesforce productivity are growth drivers.”
“It has one of the largest networks of medical representatives in India and over 80 per cent of doctors prescribe its products. We believe growth potential in the chronic segment would likely drive meaningful margin expansion,” Macquarie said in its note.
The company’s IPO was entirely an offer for sale by its promoters, global private equity firm Cairnhill, Beige and a few other investors.
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