Mankind Pharma records block deal of 6.49 million shares; Stock jumps over 5% in morning trade

Mankind Pharma, the sixth-largest company in the pharmaceuticals sector, is in the spotlight today due to block deals involving the company’s shares.

Mankind Pharma incorporated in 1991, develops, manufactures, and markets pharmaceutical formulations developed for various acute and chronic therapeutic areas, along with several consumer healthcare products.

About the Block Deal

In today’s morning trading session, approximately 6.49 million shares, constituting a 1.62% stake, were exchanged in 24 block deals involving Mankind Pharma on February 8. The identities of the buyers and sellers involved in the transaction were not immediately known.

On Wednesday, February 7, members of Mankind Pharma’s promoter group announced their decision to collectively sell a 1.62% stake in the company, aiming to meet the minimum public shareholding norms.

The promoters of Mankind Pharma intend to reduce their stake from the current 76.50% to 74.88%. This adjustment is necessary to comply with the minimum shareholding norms, which require the promoter holding in a company to be below 75%. Furthermore, as per the guidelines set by the market regulator Sebi, all listed firms are required to maintain a minimum public shareholding of 25%.

On Wednesday, February 7, members of Mankind Pharma’s promoter group announced their decision to collectively sell a combined stake of 1.62% in the company, aiming to meet the minimum public shareholding norms.

Sheetal Arora, Arjun Juneja, and Puja Juneja, the company’s promoters and promoter group members, will be selling a portion of their shareholding.

Shareholding Pattern

In terms of ownership, the promoters hold a 76.50% stake in the company. The majority stake is held by Ramesh Juneja, Rajeev Juneja, and Prem Juneja, accounting for 20.81%, 19.95%, and 15.42%, respectively, while the Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) hold 6.74% and 9.78%. The remaining 6.97% is held by public investors; however, this distribution will change once the details are updated by the exchanges.

IPO Listing

Mankind Pharma made its debut in the Indian markets on May 09, 2023, at Rs 1300 each on the BSE, compared to the final issue price of Rs 1080 each, representing a premium of around 20%. The size of the IPO was Rs 4326.36 crore, and the entire issue was offered for sale, with existing promoters selling 4,00,58,844 shares during the IPO.

During the IPO, the company raised Rs 1297.91 crore by offering 12,017,652 shares to Anchor investors, and the final anchor locking period for these shares will be until August 01, 2023. The company’s IPO was subscribed by 15.32, which is low compared to the prevailing IPOs and the subscription trend.

Share Performance

At the beginning of the day, the company’s shares commenced trading at Rs 2,200 per share, marking an increase compared to the previous day’s closing price of Rs 2,128 each on the BSE. The intraday highs and lows were recorded at Rs 2,240.15 and Rs 2,170.70, respectively.

Currently, they are trading at Rs 2,234.25 apiece, reflecting a 4.92% increase from the previous day’s close. The current market capitalisation is Rs 89,445 crore.

Furthermore, the company’s shares are trading at 1.4% below their 52-week high price of Rs 2,260 each. Additionally, the stock has generated a return of 11.75% in a month and 25.59% over the past three months. The company’s shares have doubled in price in 276 days based on the final issue price of Rs 1,080 each.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.