Mankind Pharma, a leading domestic pharmaceutical and consumer health company, is all set to hit the market with a pure offer for sale (OFS) worth Rs 4,000 crore tomorrow, April 25. The IPO will conclude on April 27, 2023.
The promoters of the company are selling one crore shares or 2.5 percent equity. As a result, the promoter holding will fall to 76.5 percent against earlier 79 percent. Two PEs are selling three crore shares. Chryscap is selling 2.5 percent and Cairnhill Ltd which owns 11 percent equity in the company is selling five percent of the holding.
The issue is priced between Rs 1026 to Rs 1080 per share. Kotak Mahindra Capital Company Limited, Axis Capital Limited, IIFL Securities Limited, Jefferies India Private Limited, and J.P. Morgan India Private Limited are lead managers to Mankind Pharma IPO and the equity shares offered through Red Herring Prospectus are proposed to be listed on both BSE and NSE.
Rajeev Juneja, Managing Director of Mankind Pharma, in an interview with CNBC-TV18 stated that the company saw good interest from foreign institutional investors and domestic mutual funds during the roadshows. He added that the company will continue to focus on the Indian market, although exports have been a small portion of their sales.
According to Juneja, 13 percent of the company's sales come from National List of Essential Medicines (NLEM), while 75 percent of the products are manufactured inhouse and that gives them an edge over other companies that outsource their manufacturing.
Also Read: M&A Outlook 2023 — here's why pharma to be a promising sector for further investments this year
However the company's margins remained under pressure due to rise in in API prices, Juneja said.
Mankind Pharma, the fourth largest pharma company in terms of domestic sales, is the manufacturer of popular brands like Manforce, PregaNews, and Unwanted 72, which have gained immense popularity among consumers. The company's 98 percent sales are from India. Pharma accounts for 90 percent of the total sales, while consumer health accounts for 9-10 percent sales.
Tier 2-4 cities and rural account for 47 percent of sales, while 37 percent for industry. The company's key USP is affordability and accessibility. The products are priced 15-20 percent cheaper.