Mankind Pharma’s stock increased 2.3% during trading, reaching an intraday high of Rs 2,753 on the BSE. A day after the company’s qualified institutional placement (QIP) was launched, the stock was purchased at a floor price of Rs 2,616.55 per share. This is a 2.4% reduction from the closing price on Monday. According to its registration, the QIP wants to raise Rs 3,000 crore.
Mankind Pharma QIP Launches
Mankind Pharma rose 1.17% to Rs 2722.15 after announcing that its board has approved the launch of a qualified institutional placement (QIP) of equity shares at a minimum price of Rs 2,616.55 per equity share.
The opening of the issue was approved and announced by the company’s board on Monday, December 16, 2024. Compared to the scrip’s previous closing price of Rs 2,690.80 on the BSE, the floor price of Rs 2,616.55 represents a 2.76% reduction. The business anticipates that the aforementioned offer will generate Rs 3,000 crore. A reduction of no more than 5% on the floor price determined for the problem may be offered by the company. The book running lead manager assigned to the issue will be consulted in order to set the issue price.
IPO and market performance
One of the largest pharma business IPOs in recent years was Mankind Pharma’s ₹4,326 crore offering in April 2023. Mankind Pharma’s share price has increased by more than 90% since it was listed at ₹1,300 a share, giving investors a sizeable profit. The stock showed sustained investor confidence as it ended Monday’s trading session at ₹2,686.05, up 1.7%. Mankind Pharma’s strategy focus on minimizing its debt load while sustaining solid financial performance is demonstrated by its ₹3,000-crore QIP. With the recent acquisition of BSV and consistent growth in all important indicators, the business is still well-positioned for long-term success.
Fund Utilisation
The QIP’s proceeds will be used by Mankind Pharma to partially finance the purchase of Bharat Serums and Vaccines (BSV), a pharmaceutical business that specializes in critical care, women’s health, and assisted reproductive technology. Earlier in July, the deal was made public.
The business will utilize a portion of the QIP earnings to finance the acquisition as well as regular business needs and the repayment or prepayment of some outstanding debts.
