Mono Pharmacare IPO Final Subscription Status

Mono Pharmacare IPO closed on Wednesday, 30th August 2023. The IPO had opened for subscription on 28th August 2023. Let us look at the final subscription status of Mono Pharmacare Ltd at the close of subscription on 30th August 2023. It was a book building IPO with the price band set in the range of ₹26 to ₹28 per share. The final price for the IPO will be discovered through the process of book building but for all analytical purposes here, the upper end of the band will be taken as the benchmark price in this IPO. The stock has a face value of ₹10 per share.

About the Mono Pharmacare IPO

Mono Pharmacare IPO worth ₹14.84 crore comprises entirely of a fresh issue of shares with no offer for sale (OFS) component in the IPO. The Fresh Issue of shares by Mono Pharmacare Ltd entails the issue of 53 lakh shares which at the upper IPO price band of ₹28 per share aggregates to ₹14.84 crore. Since there is no offer for sale (OFS) portion, the fresh issue size will also be the total size of the IPO. Therefore, the overall size of the IPO of Mono Pharmacare Ltd will also entail the issue of 53 lakh shares which at the upper end of the IPO price band of ₹28 per share aggregates to ₹14.84 crore. The stock has a face value of ₹10 and retail bidders can bid in minimum lot size of 4,000 share each. Thus, the minimum investment of ₹112,000 in the IPO is the base limit. That is also the maximum that a retail investor can apply for in the IPO.

HNIs / NIIs can invest in a minimum of 2 lots of 8,000 shares worth ₹224,000 as the bare minimum investment. There is no upper limit for the HNI / NII category or even for the QIB category. Mono Pharmacare Ltd will deploy the funds for working capital needs and for general corporate purposes. Post the IPO, the promoter equity in the company will get diluted from 81.02% to 56.72%. The issue is lead managed by Unistone Capital Private Ltd, while Bigshare Services Private Ltd will be the registrars to the issue. Let us now turn to the final subscription details of the IPO as of the close of subscription on 30th August 2023.

Final subscription status of Mono Pharmacare IPO

Here is the subscription status of the Mono Pharmacare IPO as at close on 30th August 2023.

The issue was open for retail investors, QIBs and for the HNI / NIIs. There was a broad quota designed for the retail and the non-retail. The non-retail quota permitted HNI / NIIs and the QIBs to invest in the IPO. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO. A total of 2,76,000 shares were allocated as market maker portion to Rikhav Securities Ltd, which will act as a market maker to provide bid-ask liquidity on the counter post listing. Market maker action not only improves liquidity in the counter but also reduces the basis risk. Here is how the allocation was done for the IPO across market, retail, and non-retail.

As can be seen, from the above table, the company has not made any allocation to the anchor investors, with no quota anyways dedicated to the QIB investors. Nearly 5.21% of the issue was reserved for the market makers, to provide buy and sell two-way quotes to ensure liquidity in the counter after listing. The market makers offer liquidity on both sides and reduce the basis risk in the counter. The balance shares were divided among the retail investors, the QIBs and the HNI / NII investor category. Since there was no anchor allocation in the IPO, there was no anchor bidding one day prior to the opening of the IPO.

How subscription built up for Mono Pharmacare IPO

The oversubscription of the IPO was dominated by the retail investors, followed by the QIB investors and the HNI / NII investors in that order. The table below captures the day-wise progression of the subscription status of Mono Pharmacare Ltd IPO. This is as of the close of each of the IPO days, as reported to the stock exchanges.

It is clear from the above table that while the retail portion got fully subscribed on the first day of the IPO itself, the HNI / NII and the QIB portion got fully subscribed only on the third day of the IPO. Both the segments saw strong traction on the last and final day of the IPO i.e., on August 30th, 2023. The HNI / NII portion sees the funding applications and the corporate applications come in on the last day. There is an allocation of 276,000 shares to Rikhav Securities Ltd for market making. The market maker offers two way quotes on the stock post listing using the inventory of shares and ensures that investors do not get overly worried about liquidity and basis risk in the early stages.

Mono Pharmacare IPO opened for subscription on 28th August 2023 and closed for subscription on 30th August 2023 (both days inclusive). The basis of allotment will be finalized on 04th September 2023 and the refunds will be initiated on 05th September 2023. In addition, the demat credits are expected to happen on 06th September 2023 and the stock is scheduled to list on 07th September 2023 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated.

Read about Mono Pharmacare IPO

A quick word on Mono Pharmacare Ltd and the SME IPO

Mono Pharmacare Ltd was incorporated in 1994 and is engaged in the marketing and distribution of pharmaceutical products. It counts some of the top pharma companies in India as its key clients. Mono Pharmacare Ltd is a distributor and supplier of a wide array of pharmaceuticals products and medicines. Mono Pharmacare Ltd offers healthcare and cosmocare products as part of its portfolio. Under healthcare products, it offers antibiotic medicines, cough and cold related anti allergic medicines, antifungal medicines, Nutraceutical medicines, analgesic, antipyretic medicines, Antacid medicines, and cardiac–diabetic medicines. Under the Cosmocare products the company offers sunscreen lotions, charcoal anti-pollution facewash, deep cleansing facewash, aqua lemon skin rejuvenating facewash and foaming facewash.

On the distribution side, Mono Pharmacare Ltd works directly with over 23 companies including marquee names like Abbot, Reddy Labs, Elder Pharma, Eris Lifesciences, HLL Lifecare, Mylan, Novo Nordisk, Pfizer, Sanofi, Torrent Pharma, Cadilla, Alembic, Emcure and Wockhardt. The Ahmedabad Medical Corporation works closely with over 13 companies including Bayer, Cipla, Natco, Sun Pharma, Zydus and Micro Labs. Finally, Supal Distributors unit works closely with Alkem, Biocon, Ajanta Pharma, GlaxoSmithKline, Lupin, Hetero, Intas and Johnson & Johnson. Mono Pharmacare is currently led by Panilam Lakhatariya, with over 20-years exposure to the pharmaceutical field.

The company has been promoted by Panilam Lakhatariya and Supal Lakhatariya. The promoter holding in the company currently stands at 81.02%. However, post the fresh issue of shares and the OFS, the promoter equity holding share will reduce to 56.72%. The fresh issue funds will be used by the company for meeting its working capital funding gaps and for general corporate expenses. While Unistone Capital Private Ltd will be the lead manager to the issue, Bigshare Services Private Ltd will be the registrar to the issue. The market maker for the issue is Rikhav Securities Ltd.