The initial public offer (IPO) of Mankind Pharma, one of the largest pharma companies in India, received muted response from retail investors, qualified institutional buyers (QIB) and non-institutional investors, resulting in only 9 per cent of the total offer being subscribed on Day 1.

Till 3:30 pm, the issue received response from non-institutional investors (NIIs) who subscribed about 19 per cent and <a href="https://www.cnbctv18.com/business/companies/mankind-pharma-ofs-saw-good-interest-from-fiis-domestic-mfs-during-roadshows-says-md-16446121.htm">retail investors</a> who had subscribed about 8 per cent of the allotted quota to them and nil from qualified institutional buyers (QIBs).

The company has received bids for 23,17,510 shares against 2,80,41,192 shares on offer, according to data on NSE.

As much as 50 per cent of the issue size has been reserved for QIBs, 35 per cent for retail investors and the remaining 15 per cent for NIIs.

According to market observers, the grey market premium (GMP) of <a href="https://www.cnbctv18.com/market/mankind-pharma-ipo-opens-today-should-you-subscribe-gmp-key-details-16490381.htm">Mankind Pharma</a> is around Rs 90 today.

The Rs 4,300-crore public issue, which is completely an offer for sale (OFS), opened for subscription on April 25, and will close on April 27. Investors can bid for 13 shares in 1 lot and in multiples thereof.

The price band has been fixed in the range of Rs 1,026-1,080 per share.
<h2>Below are the 4 big issues with Mankind IPO:</h2>
1) The entire management is made of family members. So, for the next leg of growth, and to earn some credibility, it would be ideal to have an independent professional run the company.

2) While Mankind has shown strong growth rates, cash flow and zero debt, their primary strategy is limited to undercutting prices while competing with the likes of Cipla and Dr Reddy’s. There can be a question on how sustainable it is in the long run. We could look at how much the price competition has helped them in gaining market share in recent years to substantiate the point.

3) They are still seen as a consumer company and not a maker of complex drugs or healthcare products. This could lead to a consumer preference for competing products especially in chronic ailments for a Cipla/DRL.

4) The Panacea acquisition hasn’t paid off as expected.
<h4>Analysts remain watchful</h4>
Analysts said that they remain watchful of the tepid response from the NIIs and QIBs, and hope for a turnaround on the last day of the issue.

Brokerages mostly have a 'subscribe' rating on the public issue as the drug maker's moderate valuations, complete OFS nature, and bulky size make it an interesting play in the primary markets.

"From FY20 to FY22, it has shown healthy financial growth. Investors can wait till the last day, which is April 27, for some oversubscription or wait for the listing as it is an offer for sale and not a fresh issue, which can affect the listing gains," said said Manoj Dalmia, Founder and Director, Proficient equities Private limited.

Mankind Pharma IPO sees muted response; only 9% of issue subscribed on Day 1

Till 3:30 pm, the issue received response from non-institutional investors (NIIs) who subscribed about 19 per cent and retail investors who had subscribed about 8 per cent of the allotted quota to them and nil from qualified institutional buyers (QIBs)

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Mankind Pharma IPO sees muted response; only 9% of issue subscribed on Day 1

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