India (Commonwealth) _ According to bankers, the phenomenal performance of Mankind Pharma Ltd. since its IPO in Mumbai in May could spark more consumer-related initial public offerings in India in the second half.
The company’s shares have risen 57% in almost two months after raising 43.3 billion rupees ($528 million) in India’s second-largest fresh share sale this year, prompting a flood of buy calls from analysts.
Because of its successful line of fast-moving consumer products, such as condoms, sanitizers, and antacids, Mankind has significant name recognition among Indian customers and investors. According to Peihao Huang, co-head for Asia, the stock is a solid illustration of what investors are prepared to pay when it comes to IPOs.
In an interview, she explained that it is about consumer health, is domestically driven, has scale, and is lucrative. We’re noticing an increase in interest in India. Domestic consumption is increasing as a result of favorable government policies. Mankind Pharma’s performance was beneficial to the whole IPO market.
This year’s IPOs in India have raised over $2.1 billion, a 60% decrease from the same period in 2022, when proceeds were boosted by Life Insurance Corporation of India’s $2.7 billion offering, the country’s largest on record. Most countries have witnessed a drop in stock fundraising this year, owing to fears about weakening economies and rising interest rates.
Nonetheless, India’s major equity benchmark has outpaced developing market counterparts this year, as domestic spending has aided economic development. In addition, a slowdown in Chinese company offerings has offered India an advantage as investors seek possible returns in alternative emerging countries.
ASK Automotive Ltd., a New Delhi-based supplier to motorbike manufacturers, and Ola Electric, an electric vehicle manufacturer that began construction on its gigafactory in the southern state of Tamil Nadu last month, are two consumption-focused companies working on offers in India.
“India is the next growth engine for the world,” Selina Cheung, co-head of Asia equity capital markets at UBS AG in Hong Kong, said. She noted that the country will see “a lot more” deals in the future.
