BENGALURU, May 9 (Reuters) – Shares of India’s Mankind Pharma Ltd (MNKI.NS) ended with beneficial properties of 31.7% of their buying and selling debut on Tuesday, valuing the maker of Manforce condoms at 569.76 billion rupees ($6.97 billion) in a uncommon occasion of a profitable home public itemizing this 12 months.

Mankind’s 43.26 billion rupees preliminary public providing (IPO) ranks as India’s greatest to this point in 2023, and the third-biggest ever. It can also be the most important amongst Indian pharma firms since Gland Pharma Ltd (GLAD.NS) went public in 2020.

Shares of the corporate, which additionally owns India’s high at-home being pregnant check equipment Prega News, opened at 1,300 rupees, nicely above its IPO value of 1,080 rupees, earlier than surging 32.4% to a session-high of 1,430 rupees in heavy volumes.

The firm’s profitable debut comes amid a depressing marketplace for home listings. Since peaking in 2021 — when 183 companies went public, per information from Tracxn — the IPO market has fizzled out amid issues of firms’ valuations and profitability in addition to the volatility in international markets.

In the previous six months, attire retailer Fabindia, jeweller Joyalukkas, skincare startup Mamaearth and e-commerce agency Snapdeal have scrapped their IPO plans, principally blaming risky inventory markets.

Even the businesses that did go public in that interval haven’t fared so nicely.

For occasion, KFin Technologies Ltd (KFIN.NS), Elin Electronics Ltd (ELIE.NS) and Avalon Technologies Ltd (AVAL.NS) are all buying and selling under their IPO costs. Sula Vineyards Ltd (SULA.NS) had a weak debut in December, however has since recovered.

Mankind’s debut might assist revive the IPO market, mentioned Hemang Jani, fairness strategist at Motilal Oswal Financial Services.

The firm “clearly stands out as after a long time a company with good business model and performance numbers is listing. The strong debut will likely lift the sentiment for the IPO market overall.”

Its Manforce condoms is the highest model within the male condom class by gross sales within the Indian market, in accordance with the corporate’s IPO prospectus. It competes with Reckitt Benckiser Group’s (RKT.L) Durex and TTK Group’s Skore within the home market.

The firm has develop into India’s fourth-largest pharmaceutical firm by addressing affordability, accessibility and high quality via decrease pricing, brokerage Macquarie Research mentioned, beginning protection of the inventory with an “outperform” ranking.

About 33.19 million Mankind shares have been traded on Tuesday, making it the tenth most lively inventory throughout Indian exchanges. The benchmark Nifty 50 index (.NSEI) closed up 0.01%.

The firm’s IPO comprised shares value 43.26 billion rupees offered by current shareholders, together with founder Ramesh Juneja. It allotted 12.98 billion rupees value of shares to 77 anchor traders together with Canada Pension Plan Investment Board, the Singapore authorities, Goldman Sachs and Abu Dhabi Investment Authority.
($1 = 81.7800 Indian rupees)

Reporting by Rama Venkat in Bengaluru

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