Mankind Pharma Ltd. rallied almost 23% on its first day of trading in Mumbai after raising 43.3 billion rupees ($529 million) in one of India’s largest initial public offerings of the year.
(Bloomberg) — Mankind Pharma Ltd. rallied almost 23% on its first day of trading in Mumbai after raising 43.3 billion rupees ($529 million) in one of India’s largest initial public offerings of the year.
The drug and contraceptive maker’s stock jumped to as high as 1,333.70 rupees on Tuesday. Its shareholders had sold 40 million shares at 1,080 rupees apiece in the IPO, the top of a marketed range that started from 1,026 rupees.
The strong debut comes after anchor investors like Canada Pension Plan Investment Board, Government of Singapore and Abu Dhabi Investment Authority together subscribed to nearly 13 billion rupees worth of shares in the offering. The company didn’t sell any new stock.
Mankind’s deal marks the return of mid-to-large-sized debuts in India. Its performance could help improve appetite for new share sales in the South Asian nation, following a 13% drop in year-to-date IPO proceeds compared to the same period in 2022. India’s benchmark NSE Nifty 50 Index is outperforming a broader gauge of emerging-market equities this quarter.
READ: Foreign Funds Flock to India as China Rally Flops: Taking Stock
Excluding offerings by real estate investment trusts, the IPO is India’s biggest since Delhivery Ltd.’s listing about a year ago. Over the past five years, Mumbai listings larger than $500 million have on average declined 8.2% in their first day of trading, data compiled by Bloomberg show.
India’s market is awaiting more listings of similar size, including from real estate investment trust Nexus Select Trust and stationary company Doms Industries.
Founders of Mankind and affiliates of private equity investors Capital International Group and ChrysCapital sold their shares in the IPO. Kotak Mahindra Capital Co., IIFL Securities Ltd., Jefferies India and JPMorgan India arranged the offering.
READ: India Passes China as World’s Most Populous Nation, UN Says
–With assistance from Paresh Jatakia.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.