Mankind Pharma zooms 32% on debut
Although the quota for eligible institutional investors was subscribed more than 49 times, the quota for retail investors was not even fully subscribed
Mankind Pharma made a thumping debut on stock market on May 9. The stock listed at a 20% premium to the issue price, giving a bumper exit option for investors. .
Its shares opened on the BSE at Rs 1,300, a premium of 20% over the issue price of Rs 1,080. The the stock ended the day at Rs 1,430, with a gain of 32.4%.
Institutional interest
There are two major reasons behind the strong listing of Mankind Pharma’s stock. The first reason is the tremendous response to the IPO from institutional investors. The IPO was subscribed 15.3 times. Although the quota for eligible institutional investors was subscribed more than 49 times, the quota for retail investors was not even fully subscribed. The second reason is the bullish report issued by Macquarie before the listing. Macquarie initiated coverage on this stock with an outperform rating and gave a target of Rs 1,400, which was achieved within an hour of listing.
The stock market has been booming for the past week. On Tuesday, the sensitive index of BSE touched the level of 62,000 once again. The listing of Mankind Pharma’s shares also benefited from the bullish sentiment in the market. Many brokerage houses are advising buying this stock.
Macquarie stated in their report that by December 2022, this company had cash of Rs 280 crore. Additionally, this company has a focus on medicines related to chronic, i.e., permanent diseases, which will further improve the margin along with the growth in the business. On the day of listing, May 9, the stock had a strong rise. Due to this, people who invested money in the IPO earned a lot.