Billionaire businessman Ramesh Juneja-promoted pharmaceutical company Mankind Pharma Ltd, failed to attract enough retail investors till the closing day of its much-awaited IPO – mirroring a global trend of waning interest for fresh equity issuances among retail investors.
The apathy among retail investors left the retail quota of the company’s IPO book 8% unsubscribed.
The IPO was open from Tuesday to Thursday, wherein shares of Mankind Pharma were offered at Rs. 1026 -1080 per share.
Mankind Pharma, which created the famous condom brand Manforce Condoms, the pregnancy test kit Prega News, and the emergency contraceptive brand Unwanted-72, plans to raise Rs. 4,326 crore through the IPO that was launched during a lull in the primary market.
The IPO entails an offer for sale (OFS) of up to 40.06 million shares by its current shareholders and promoters. The OFS includes about 3.71 million shares by Ramesh Juneja, 2.80 million shares by Sheetal Arora, 3.51 million shares by Rajeev Juneja, 17.41 million by Cairnhill CIPEF Ltd, 9.96 million shares by Beige Ltd, 2.62 million shares by Cairnhill CGPE Ltd, and 50,000 shares by Link Investment Trust.
The IPO saw sufficient demand from qualified institutional buyers (QIB), with the quota being subscribed 49.16 times. At the closing, the IPO was overall oversubscribed 15.32 times.
This was expected because just before the opening of the IPO, Mankind Pharma managed to mop up ₹1,297.9 crore from anchor investors such as Canada Pension Plan Investment Board , Government of Singapore, ICICI Pru Pharma, Monetary Authority of Singapore, Goldman Sachs, Blackrock Global Funds, Morgan Stanley and Neuberger Berman, HDFC Trustee and SBI MF ahead of its Initial Public Offering (IPO).
There were 77 anchors who were allotted a total of 12 million shares at a price of ₹1,080 per share before the IPO was opened for the public.
Mankind Pharma is the country’s fourth largest pharmaceutical firm in terms of domestic sales and second largest in terms of sales volume for the financial year 2022.
Mankind Pharma’s shares will be listed on exchanges on 9 May, 2023.
