- By Priyanka Payal
- Thu, 11 May 2023 12:50 PM (IST)
- Source:JND
THE SHARE price of recently listed Delhi-based drugmaker Mankind Pharma fell over 5% at one point on Thursday (May 11) after the income tax department conducted searches at the company’s premises in New Delhi. As per sources, the crackdown by the IT department came over over allegations of tax evasion. ET quoted sources as saying that the department is searching the company premises in Delhi and nearby locations, documents are being checked and people are being questioned. According to Zee Business, the IT raid is likely to continue for 1-2 days.
The company made its debut on the stock exchanges on Tuesday.
Mankind Pharma shares hit the stock market on May 9 at a hefty premium of 20% to the IPO price. The stock debuted at Rs. 1,300 a piece against the issue price of Rs. 1,080 per share. The company’s market capitalisation now stands at Rs. 54,293 crore.
The Rs 4,326 crore initial public offering (IPO) of Mankind Pharma, which was entirely an offer for sale (OFS), received an overwhelming response, primarily due to strong interest from qualified institutional investors. The issue was subscribed a whopping 15.32 times. The allocation of retail investors was subscribed to merely 92% as they kept themselves away due to the hammering of recent pharma and other big-ticket IPOs. The issue was open for subscription from April 25 to April 27 in the price range of Rs 1,026-1,080 a share.
In the intraday trading on Thursday, Manking pharma shares traded as low as Rs. 1,310 per piece.
The pharma company primarily focuses on the Indian pharmaceutical market which has prospects for healthy growth. Mankind Pharma claims to be the dominating player in the male condom category under the 'Manforce' brand. The pharma company’s other brands include pregnancy test kits (Prega News), and the emergency contraceptive brand Unwanted – 72. The drug maker has a pan-India marketing presence and operates 25 manufacturing facilities in India.
In the domestic market, Indian benchmark indices Sensex and Nifty opened on a positive note today. Sensex was up 0.058% while Nifty was up 0.035% at 12:44 pm IST today.