At Tuesday’s closing price, Mankind Pharma was valued at a price-to-earnings ratio of 43 times its FY22 earnings. Mankind is now India’s fifth largest pharma company by market value of ₹57,046 crore. Sun Pharma, Divi’s Lab, Dr. Reddy’s Lab, and Cipla are currently valued between ₹75,284 crore and ₹2.31 lakh crore.
The ₹4,326-crore public issue of Mankind Pharma – the biggest IPO in 2023 so far- was subscribed 15.32 times. It was an offer for sale (OFS) by existing shareholders.
The IPO was the largest ever by a domestic drug maker since Gland Pharma came up with its ₹6,480 crore public issue in November 2020.
“The healthcare sector was a laggard over the last one year but started seeing traction over the last two months as the monthly pharma data showed improvement. Mankind received a good response from its anchor clients given its domestic-focused business with strong brand recall in chronic and consumer healthcare segments,” said Hemang Jani, head of equity strategy at Motilal Oswal Financial Services.
