India’s largest condom maker has raised Rs43.3bn ($529mn) within the nation’s largest itemizing this yr, as sovereign wealth funds Abu Dhabi Investment Authority and Singapore’s GIC led a rush to purchase one of many nation’s most generally identified pharmaceutical manufacturers.

Mankind Pharma will float on the Mumbai inventory trade subsequent month after its provide to buyers acquired 15 occasions as many bids as there have been shares out there by the tip of Thursday.

Canada Pension Plan Investment Board, the nation’s largest pension plan, and the asset administration arms of Goldman Sachs and Morgan Stanley joined the sovereign wealth funds as anchor buyers paying Rs1,080 a share, on the high finish of Mankind’s worth vary.

Mankind makes medication for every little thing from coronary heart situations to indigestion however is finest identified for its Manforce model of condoms, which instructions a 30 per cent share of the Indian market.

The itemizing of Mankind is a uncommon shiny spark in a slowdown in new listings in Mumbai, the place simply three corporations floated within the first quarter. That is down greater than 50 per cent yr on yr, based on knowledge supplier Tracxn.

Mankind’s flotation, which provides it a valuation of Rs432.6bn, will “bring some life to the IPO market which has been fairly dull for the last few months,” stated Neha Singh, Tracxn co-founder and chief govt.

The international marketplace for preliminary public choices has frozen with inflation, rising rates of interest and the struggle in Ukraine hitting valuations and sentiment.

Indian start-ups rushed to checklist as a wave of simple cash swept via the nation in 2021 and 2022. There have been 65 listings in 2021 and 41 the next yr, in contrast with an annual common of 19 from 2018 to 2020, Tracxn knowledge reveals.

But a collection of disastrous tech listings in 2021 bruised buyers and left lingering worries about excessive valuations. Shares of Zomato, a meals supply firm that listed in 2021, are actually buying and selling at Rs59.95, virtually half their itemizing worth of Rs115.

Several high-profile tech start-ups, together with SoftBank-backed resort aggregator Oyo, have been compelled to desert or downsize itemizing plans.

In 2021, “there was a lot of euphoria and the companies did the IPOs at very high valuations with absolutely no clarity on revenue generation or profitability,” stated Hemang Jani, fairness strategist at Mumbai-based dealer Motilal Oswal.

But now “valuation is something investors will have on top of their mind, they will not be looking for exotic companies that are doing something very fancy”.

Mankind, a 32-year-old firm based mostly in New Delhi, is India’s fourth-biggest pharmaceutical firm by home gross sales, and is majority owned by its founding household.

It posted Rs78bn in operational income for the yr that ended March 31 2022, and revenue after tax of Rs14.5bn.

Priyanka Kishore, financial director at Singapore-based executives discussion board IMA Asia, stated buyers prefered corporations equivalent to Mankind over high-growth tech start-ups.

“In these conditions, you probably are going to see IPOs from companies like this where the balance sheets are well grounded . . . rather than [companies operating in] the ‘virtual universe’,” she stated.

While India’s pharmaceutical sector is finest identified for generic drug exports to different international locations, analysts say that Mankind is fascinating due to its important home revenues. About 97 per cent of its operational income comes from India, the place it has 25 factories.

“There is more interest in domestic businesses with large exposure to India rather than generic [that is, overseas] markets, where volatility tends to be higher,” stated Saion Mukherjee, healthcare analyst at Japanese financial institution Nomura.