Mankind Pharma Share Price Drops as Lock-In Period Ends

Mankind Pharma Share Price Drops as Lock-In Period Ends

VoM News Desk | November 6, 2023 | 01:39 PM IST | Breaking News | Follow on Google News

Mankind Pharma Share Price Drops as Lock-In Period Ends

Mankind Pharma Share Price Drops as Lock-In Period Ends

Mankind Pharma’s share price declined over 2% as the lock-in period for shareholders came to an end. The company’s shares fell by as much as 2.40% to ₹1,732.65 apiece on the BSE.

Unlocking of 70% Outstanding Shares

Around 70% of the outstanding Mankind Pharma shares are now eligible for trading after the lock-in period ended. According to data from Nuvama Alternative and Quantitative Research, more than 28 crore Mankind Pharma shares have become available for trading, which is expected to lead to increased trading volumes.

Strong Debut and Positive Growth

Mankind Pharma had a strong stock market debut on May 9, 2023, following a successful initial public offering (IPO) that raised ₹4,326.36 crore. The stock was listed with a substantial premium of 20% at ₹1,300 per share on the BSE, significantly higher than the IPO price of ₹1,026 to ₹1,080 per share.

Since its listing, Mankind Pharma’s share price has rallied by more than 36% from its listing price and over 64% from its IPO price. The company reported a net profit of ₹511 crore in the second quarter of FY24, reflecting a 21% growth from ₹422 crore in the corresponding quarter of the previous fiscal year.

Analysts Expect Growth in the Future

While Mankind Pharma faced challenges in its acute segment sales during the September quarter, analysts anticipate improved growth ahead. Kotak Institutional Equities expects Mankind Pharma to report a 14% domestic sales compound annual growth rate (CAGR) over FY2023-26, driven by the expansion of its specialty divisions, increased chronic contribution, and enhanced field force productivity. Additionally, they project strong export performance and operating leverage to result in a robust 29% earnings per share (EPS) CAGR for Mankind Pharma over the same period.

In the most recent trading session, Mankind Pharma shares ended 1.56% lower at ₹1,775.40 apiece on the BSE.

Disclaimer: The opinions and suggestions provided in this article are those of individual analysts and do not reflect the viewpoints of VoM News. We encourage investors to consult with certified experts before making any investment choices.

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