So a new IPO has come in the market. Now whether you have to invest money in this IPO or not, we are going to do a complete analysis in this blog. So tempo of Mankind Pharma has come. Well, you must have heard the name of Sun Pharma in India.
You must have heard the name of Copal and after that the name of Mankind Pharma comes. So it is being said that itis on the third position in the pharma industry and many people have been interested in this company. The reason is that you must have heard the name of many of its products.
Like in 1991, this company was incorporated and in 2007, they launched a brand called Manforce Condoms. After that, people must have heard the name of Unwanted72, Prega News, you must have heard it was launched in 2010, Go-fast was launched in2012, in 2016, Acne Star was launched.
Pimples come on the face for that and in 2021, they launched multivitamin tablets in the name of Health OK. So they have almost for every disease, they are making medicines and pharmaceuticals and through these popular brand names, they are getting business.
We have also tried to discuss this, but because we have to invest money, we will see straight away financials, we will not go only on the brand name. Let’s talk about financials, how is the business of the company going on, straight talk, so here you can see the assets, we will talk about assets first.
In 2020, in 2021, in 2022, their assets have increased continuously. If you see, from 5000 crores to 5073, next year in 2021, the figure of 6372 crores reached in the financial year and in 2022, they crossed the figure of 9147 crores.
So the assets of the company are increasing continuously, the revenue of the company is increasing continuously. So here from 5975 crores to 7977 crores, you are seeing the figure in 2022, the profit is also increasing continuously.
Therefrom 1056 crores to 1452 crores, you are seeing the figure of 1452 crores, the profits also increasing continuously, but along with this, the debt of the company is also increasing. One second, many people will say that the debt of the company is increasing,
so if the loan of the company is increasing, then the loan of the company was about 126 crores, here it is234 crores, there you are seeing that the loan is talking about 850 crores, so here the debt of 868 crores is on the company, but see the profit, only the profit is 1452 crores,
so the profits more than the debt, which is a very good thing, so the debt is not very high on the company, the financials look very good, but how will you invest money by looking at the financials, people get confused because what is the important thing to see, what valuation amid investing money on,
the company is growing, the company’s products are good, but the money that is being asked is not very high in the value of the share, let’s see it, so here we will understand it, I have written it all for your clarity of understanding, so the return on equity of the company is looking good, it is 25.9%, the return on capital import is 25.5%,
thesis also good, but now let’s talk about the earnings according to the per share, so according to the per share, if you see the earnings per share, it is coming-out to be 35.78, knowhow do we get the PE ratio, before I talk about the PE ratio, here you see what is the price of the IPO, so from 1026 you see the upper limit, 1080,
so the share is demanding for 1080 rupees that we will sell our share for 1080 rupees, so if you divide 1080 by earnings per share, so what is the price upon earning, PE means price upon earning, so the price is 1080 divided by, if we talk about earnings per share,35.78, then the figure will come in front of you, 30.78,
now how will we know if 30’s PE is more or less, we will see what is the industry PE, so the industry PE is around35.21, so we see the overall PE, that what is the price to earnings ratio of other companies, and we do a peer comparison with it, so the company is demanding 30’s PE in today’s date,
but let me tell you one thing, what does every company want in the time of IPO, that we can pick up as much money as possible from the market, so IPO never comes cheap, so if the valuation company is demanding, then I am telling you the first thing, it is not cheap, but now you have to invest or not, we will try to understand this in the next slide,
so let’s see the details of IPO here, from 25th April, its IPO is starting, you can place your bid and it will be till27th April, so the start date is 25th, and the end date is 27th,now how much money are they asking, they are asking 4326, 4326.36 crores, they are asking for this money, in this they will put about 4 crore shares in the market,
now you know that when money is taken for IPO, it can have two purposes, one can be a fresh issue, what do companies doing fresh issue, they pick up money from the market and invest it in their business, here there is no fresh issue, here all the money is offer for sale,
so what is the meaning of offer for sale, the existing promoters of the company who have shares, they are selling their shares and taking money from the market in exchange for the shares, so when someone sells his share and he gets cash, then you understand that the money is going to reach the promoters of the company directly, 4326 crores,
they will pick it up from you and it will go to their pocket and in return they are giving you their shares, shares are at the higher end of valuation, valuation is not cheap, so these shares are not available at a cheap price, it is possible, now we will talk about listing gain, that what will bathe benefit of listing, we are just going to talk about it,
so I have told you the share price of IPO, if you have this basis of allotment on 3rd May, if you get shares in IPO, then you will get credit in your Demit account on 5th of May, before that, those who will not get it, will get refunded on 4th of May and listing will be done on 8th of May,
now IPO company is very good, financials are good, valuation is one little higher side, but think this IPO is going to be oversubscribed, first thing, the second thing, in today’s date, the grey market premium that I am seeing is of about 7%,
so when am writing a blog of 7% grey market premium, what does it mean, that in the grey market, premium means that shares are being bought at premium, people are ready to pay more money to buy this share of IPO,
so if people are ready to pay more money, how much percent,7%, so what can you expect, if you have put your bet here, then you can get 7% up to 10%, you will get a listing gain, but keeping expectations above 10% may not be good, but if you see its subscription status, on the first day, when I am blog the blog, there is not much subscription, but I feel that you should wait till the last day, because it is the time till 27thof April,
so you apply on 27th of April, it does not matter, because it is random, then which IPO will be available, which will not be available, now if you apply, then you have to check one thing, what is the grey market premium of that day and what is the subscription status,
if you see that there is a lot of subscription, then it means that there may be a high chance of listing gain, now how will you know that, see you need a Demit account to apply for that you will know that in which categories, in the retail category, in the qualified institutional category, in the category of buyers,
and in the HNI category, how much percent subscription has come, how many times the subscription has come, you will see this, then you can take your decision by 27th, now infect if you want to trade an investor, you still need a Demit account for that, then youkan open it, now how much investment will you take, here in your IPO,
whenever you invest, it happens according to the lot, so the lot that has been made here is of 13 shares and according to 13shares, the cost of one lot will be 14,040 rupees, so your minimum investment will be14,040 rupees, if you get a subscription gain in your IPO, then at 14,000,
for example, you get a gain of 10%, then your money can increase, now if you want to make maximum investment, then you know that in the retail category, you cannot invest more than 2 lakhs, so you can apply for 14 lots, you will get 182 shares and for that your investment will be of 1,96,560 rupees,
so I hope in this blog you got this clarity that for this IPO, what things you have to take care of, I told you that by checking the subscription status Andrey market premium, you can invest, I have tried to give youth details of the company from the financial to the IPO, and this much information is enough for you,