Mankind Pharma Shares Jump 32% On Their Stock Market Debut

On Tuesday, Mankind Pharma shares debuted on the stock exchange at a 20% premium. The shares closed the day with a 32% rise over the upper end of the IPO price band of Rs 1,080. The stock debuted on the BSE at Rs 1,300 and closed the day at Rs 1,424 per share. The Rs 4,326 crore IPO, the highest this year, garnered a significant response, with the offer being subscribed to 15.32 times. Retail investors were less enthusiastic about the IPO, and just 92% of the quota was filled. The qualifying institutional bidder quota was filled 49.16 times, while the non-institutional bidder quota was filled 3.80 times.

The issue was open for subscription between April 25 and 27, with prices ranging from Rs 1,026 to Rs 1,080 per share."Fast growing India-centric Mankind Pharma truly deserves credit for reviving the primary market during CY2023 with a stellar listing that provided a 30% return to retail investors, and the icing on the cake was the allotment itself, wherein almost all retail investors were allotted shares," said S Ranganathan, head of research at LKP Securities. Mankind's impressive showing in the primary market has cheered individual investors, as the companies that have gone public this year have not fared well.

Shares of freshly listed companies such as KFin Technologies, Elin Electronics, and Avalon Technologies are all trading below their first public offerings. "We see limited upside from here, so investors should book profit and then re-enter at a lower price, if available," says Rajnath Yadav, Senior Analyst at Choice Broking.