Mankind Pharma IPO lists at 20.4% premium, closes higher

Mankind Pharma Ltd had a stellar listing on 09th May 2023, listing at a hefty premium of 20.37, but closing the day sharply above the IPO price and the listing price. Surprisingly, this stellar listing happened on a day when the Nifty and the Sensex closed absolutely flat. While the stock of did show some bouts of volatility during the day, it never really went below the listing price of Rs1,300. The closing of the day was at Rs1,430, which is the maximum upward movement permitted on the stock due to the 10% circuit filter condition on listing day. The stock also closed above the issue price and the listing price. With overall subscription of 15.32X and QIB subscription at 49.16X, the listing was expected to be strong even on a conservative basis. The retail portion got undersubscribed at about 0.92X but the HNI subscription at 3.80X was good enough. Eventually, QIBs made the difference to the subscription story. Here is the Mankind Pharma Ltd listing story on 09th May 2023.

The IPO price was fixed at the upper end of the band at Rs1,080 which was anyways to be expected considering the rather strong 15.32X overall subscription and the 49.16X QIB subscription in the IPO. In addition, the HNI portion had got just a little over 3.80X subscription in the IPO. The price band for the IPO was Rs.1,026 to Rs.1,080. On 09th May 2023, the stock of Mankind Pharma Ltd listed on the NSE at a price of Rs1,300, a hefty premium of 20.37% on the IPO issue price of Rs1,080. On the BSE also, the stock listed at Rs1,300, a premium of 20.37% to the IPO price.

On the NSE, Mankind Pharma Ltd closed on 09th May 2023 at a price of Rs1,430. That is a first day closing premium of 32.41% on the issue price of Rs1,080 and a premium of 10% on the listing price of Rs1,300. In fact, the listing price turned out to be the low price of the day and the stock traded all through the day above the IPO listing price while the closing price was also the high price of the day representing the 10% upper circuit price. On the BSE, the stock closed at Rs.1,424.05. That represents a first day closing premium of 31.86% over the issue price and also a premium of 9.54% above the listing price on the stock exchange. On both the exchanges, the stock listed strongly at a premium to the IPO issue price and also closed Day-1 sharply above the listing price and the IPO price too.

In fact, the high of the day was also happened to be the closing price of the day representing the 10% circuit filter permitted on the day of listing. In short, it was a strong listing and performance on both the exchanges. Despite the tepid subscription on the retail portion, the solid subscription on the QIB portion and the HNI portion made up for it. There was heavy buying support from HNIs and institutions through the day even as retail investors also jumped into the fray. The strength of the stock was evident from the fact that NSE and BSE closed flat on Tuesday.

On Day-1 of listing, Mankind Pharma Ltd touched a high of Rs.1,430 on the NSE and a low of Rs.1,300. The premium sustained through the day. In fact, if you look at the range of prices, the stock opening price turned out to be the low point of the day and the stock closed exactly at the high point of the day, which also represented the upper circuit of the stock. The surge was despite the fact that after a positive opening the markets fell sharply in the last two hours of trading to close flat. On Day-1 of listing, the Mankind Pharma Ltd stock traded a total of 331.94 lakh shares on NSE amounting to value of Rs.4,481.49 crore on the first day. The order book during the day showed a lot of buying with the buy orders far exceeding the sell orders at any point of time. The buying virtually got accelerated in the last hour or so.

On Day-1 of listing, Mankind Pharma Ltd touched a high of Rs.1,430 on the BSE and a low of Rs.1,300. The premium sustained through the day. In fact, if you look at the range of prices, the stock opening price turned out to be the low point of the day and the stock closed very close to the high point of the day, which also represented the upper circuit of the stock. The surge was despite the fact that after a positive opening the markets fell sharply in the last two hours of trading to close flat. On Day-1 of listing, the Mankind Pharma Ltd stock traded a total of 12 lakh shares on NSE amounting to value of Rs.162.68 crore on the first day. The order book during the day showed a lot of buying with the buy orders consistently exceeding the sell orders at any point of time. The buying virtually got accelerated in the last hour or so.

While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book through the day showed a lot of buying pressure with the buy orders far exceeding the sell orders at any point of time. That made it a virtual buy on dips stock through the day. This was despite a flat market closing on Tuesday. On the NSE, out of the total 331.94 lakh shares traded during the first day of trading, the deliverable quantity represented 192.10 lakh shares or a deliverable percentage of 57.87% on the NSE. That shows a lot of delivery buying during the day. Even on the BSE, out of the total 12 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 6.60 lakh shares representing total deliverable percentage of 55.0%.

At the close of Day-1 of listing, Mankind Pharma Ltd had a market capitalization of Rs.57,046 crore with free-float market cap of Rs.3,993 crore.