Mankind Pharma shares fell 5.5% to Rs 1,306 in Thursday trade, after media allegations that India's income tax authorities are carrying out searches at its New Delhi office. More information was not immediately available. Reuters' inquiries for comment were not immediately responded to by Mankind Pharma or the I-T department.

At 10.52 a.m., the share was trading 1.4% downward on the BSE at Rs 1,362. However, the shares is still trading 4.8% higher than its initial public offering price of Rs 1300. Mankind Pharma shares were listed on Tuesday at a 20.37% premium to the issue price of Rs 1,300 per share. Its initial public offering (IPO) price was set at Rs 1,080.

Meanwhile, following the IPO, brokerage company Antique started covering on Mankind Pharma with a Buy recommendation with a Rs 1584 price target. In Tier 2-4 towns, the pharmaceutical company is the market leader.

The new development areas are expected to be metro and Tier-1 cities. The brokerage company expects that India's business will increase at a 13% CAGR over the next three years. "We like Mankind's India franchise because of its diverse treatment mix and brand contributions.

Macquarie commenced coverage of Mankind Pharma on the day of its offering, with a rating of Outperform and a target price of Rs 1,400.

"We initiate coverage on Mankind Pharma with an Outperform rating, as we believe the company's net profit could double in the next three years, driven by continued sales outperformance compared to the Indian pharma market (IPM), a shift in mix towards chronic therapies, and the unlocking of significant operating leverage as the sales force efficiency improves," Macquarie said in a report.

Mankind Pharma's IPO was the biggest so far this year and also one of the largest by a domestic pharmaceutical since Gland Pharma's Rs 6,480 crore initial public offering in 2008.

At closing, the issue has been subscribed to 15.32 times. The section for QIBs has been subscribed to 49 times, and the piece for high net-worth people was subscribed to 3.8 times. However, private shareholders were interested in the IPO.

Mankind Pharma is India's fourth-largest pharmaceutical firm by domestic sales and third-biggest by volume of sales. It has a footprint across India and maintains 25 production sites. The company had a workforce of over 600 scientists and a specialized internally research and development unit with four research centres situated in IMT Manesar, Gurugram, and Thane as of December 2022