Mankind Pharma IPO subscribed 15.32 times at close

Mankind Pharma IPO worth Rs. 4,326.36 crore, consisted entirely of an offer for sale for the full amount. There was no fresh issue portion in the IPO, so no fresh funds came in and it was not EPS dilutive. The IPO saw fairly steady response on Day-1 and Day-2 of the IPO and closed with rather healthy subscription numbers at the close of Day-3. In fact, the company got fully subscribed on the first day of the IPO itself. As per the combined bid details put out by the BSE at the close of Day-3, Mankind Pharma Ltd IPO was subscribed at 15.32X overall, with best demand coming from the QIB segment, followed by the HNI / NII segment and the retail segment in that order. In fact, only the institutional segment saw some good traction on the last day. The HNI portion did do well but there was no surge of funding applications coming on the last day of the IPO. Retail portion actually did not get fully filled up. Here are the details of the overall allocation.

As of close of 27th April 2023, out of the 280.41 lakh shares on offer in the IPO, Mankind Pharma Ltd saw bids for 4,295.13 lakh shares. This implies an overall subscription of 15.32X. The granular break-up of subscriptions was in favour of the QIB investors followed by the HNI / NII investors while the retail portion got the lowest subscription among the various categories. QIB bids and NII bids typically gather most of the momentum on the last day, and that was the case in this issue also in the case of QIB bids. However, the NII bids hardly picked momentum even on the last day and just about added to its heft of the previous days.

Mankind Pharma Ltd IPO Subscription Day-3

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 24th April 2023, Mankind Pharma Ltd did an anchor placement 30% of the IPO size getting absorbed by the anchors. Out of the 4,00,58,844 shares on offer, the anchors picked up 1,20,17,652 shares accounting for 30% of the total IPO size. The anchor placement reporting was made to the BSE late on 24th April 2023. The IPO of Mankind Pharma Ltd opened on 25th April 2023 in the price band of Rs.1,026 to Rs.1,080 and closed for subscription on 27th April 2023 (both days inclusive). The entire anchor allocation was made at the upper price band of Rs1,080. Let us focus on the anchor allotment portion ahead of the Mankind Pharma Ltd IPO. Here are the details of the anchor allocation.

The QIB portion (net of anchor allocation as explained above) has a quota of 80.12 lakh shares of which it has got bids for 3,938.34 lakh shares at the close of Day-3, implying a subscription ratio of 49.16X for QIBs at the close of Day-3. QIB bids typically get bunched on the last day and while the heavy demand for the anchor placement had given an indication of the institutional appetite for the Mankind Pharma Ltd IPO subscription overall, the actual demand did turn to be quite robust for the IPO.

HNI / NII Portion

The HNI portion got subscribed 3.80X (getting applications for 228.23 lakh shares against the quota of 60.09 lakh shares). That is a rather steady response at the close of Day-3 largely because this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO, and that was not exactly visible as the overall HNI / NII portion just about added to its heft on the last day. However, the HNI portion did eventually manage to sail through.

Now the NII/HNI portion is reported in two parts viz. bids below Rs10 lakhs (S-HNI) and bids above Rs10 lakhs (B-HNI). The bids above the Rs10 lakh category (B-HNIs) typically represents most of the major funding customers. If you break up the HNI portion, the above Rs10 lakh bid category got subscribed 4.99X while the below Rs10 lakh bid category (S-HNIs) got subscribed 1.41X. This is just for information and is already part of the overall HNI bids explained in the previous para.

Retail Individuals

The retail portion was subscribed just 0.92X at the close of Day-3, showing weak retail appetite. It must be noted that retail allocation is 35% in this IPO. For retail investors; out of the 140.21 lakh shares on offer, valid bids were received for only 128.56 lakh shares, which included bids for 100.71 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.1,026-Rs.1,080) and has closed for subscription as of the close of Thursday, 27th April 2023.