Mankind makes strong debut

Mankind Pharma made a very good debut on the bourses today; as against the IPO price of Rs.1080, the stock got listed at Rs.1300 on the BSE, going up to Rs.1395 and is now trading at Rs.1380 levels.

The IPO was mainly driven by the Institutional investors – their portion was subscribed almost 50x while HNIs was at 3.8x; retail participation was tepid as their portion was undersubscribed at 0.92x or 92%.

Mankind is an India focused branded generics pharmaceutical company, clocking 10% of Rs. 8,500 cr annual revenue from over-the-counter (OTC) healthcare products like contraceptives, pregnancy kits, antacids etc and 90% from higher-margin chronic and acute pharma segments, in the ratio of 1:2.

In our IPO Analysis, we had said, “higher-than-industry growth, healthy margins, ‘large-cap’ stock with low float post listing make the fundamentals good for a long term portfolio holding.