Mankind Pharma share price further climbs after listing at 20% premium. Buy, sell or hold?

Mankind Pharma share price made a strong debut on Dalal Street as the issue opened on BSE at ₹1,300 per equity share, ₹280 per share or more than 20 per cent higher from the Mankind Pharma IPO price of ₹1,026 to ₹1,080 per equity share. Within few minutes of debut, Mankind Pharma shares went further up and hit intraday high of ₹1,413.95 apiece on BSE.

On NSE, Mankind Pharma share price opened at ₹1,300 apiece and went on to hit intraday high of ₹1,414 per share levels within few minutes of listing on Dalal Street bourses.

Speaking on Mankind Pharma IPO listing, Santosh Meena, Head of Research, Swastika Investmart said, “Mankind Pharma, the biggest IPO of 2023 made its debut in the market at a listing price of ₹1300. The company's issue price at the upper band was ₹1080, hence it got listed with a profit of around ₹220 (20 per cent). Mankind Pharma is a well-known and established pharmaceutical company that offers pharmaceuticals as well as several consumer healthcare products. The company has strong fundamentals and it is already attracting outperforming ratings from global brokerage Macuarie.”

Hold or book profit?

On whether one should further hold the stock or book profit, Ravi Singhal, CEO at GCL Broking said, “One should hold the scrip with stop loss at ₹1,200 apiece levels for near term target of ₹1,440.”

For those who missed to get Mankind Pharma shares during allotment, Ravi Singhal said, “One should buy the stock at around ₹1,240 to ₹1,250 levels for ₹1,440 apiece target maintaining stop loss at ₹1,200 levels.”

On whether one should book profit or hold the stock for more gains, Santosh Meena of Swastika Investmart said, “Investors who applied for listing gains may either choose to exit or hold it with a stop loss at the issue price i.e. ₹1,080 apiece levels.”

Expecting more upside in Mankind Pharma shares, Hemang Jani, Head of Equity Strategy at Motilal Oswal said, "Mankind Pharma received good response from its anchor clients given its domestic focused business with strong brand recall in both chronic and consumer healthcare segment. Given its healthy financial track record, domestic focus and extensive network, Mankind is likely to continue doing well.”

After three days of bidding from 25th to 27th April 2023, the public issue got subscribed 15.32 times whereas its QIB portion was subscribed 49.16 times. However, the public issue failed to get fully subscribed in the retail segment as it got subscribed only 92 per cent of its total offer.

The public offer comprised of a pure offer-for-sale (OFS) of 40,058,844 equity shares by the promoters and other existing shareholders, has a face value of ₹1 per equity share.

The offer was made through the book-building process, in which not less than 15 per cent of the offer had to be made available to non-institutional investors and not less than 35 per cent of the offer had to be made available to retail individual investors. Not more than 50 per cent of the offer were allowed to be allocated to qualified institutional buyers.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.