I-T dept searches Mankind Pharma's Delhi office, share price drops 5.5%

May 11 saw a 5.5 percent decline in Mankind Pharma shares due to media reports that the income tax department had searched the business' Delhi office.

CNBC-TV18 report came just two days after the company made a strong market entry.

Mankind Pharma listed on the exchanges on May 9 for Rs 1,300, a 20 percent premium above the IPO price of Rs 1,080. Its IPO, the first significant one of 2023, for a pharmaceutical company, received over 15.32 times as much interest.

An earlier rating of "outperform" and a target price of Rs. 1,400 per share, given by international brokerage firm Macquarie Research, indicated a possible increase of 30% from the company's issue price.

It predicted that the margin would increase from 22 percent to 28 percent and the net profit would more than double from Rs 1,300 crore in FY23 to Rs 2,800 crore in FY26 as a result of the company's growth potential in the chronic segment.