Mankind Pharma Limited IPO: Things to Know Before Investing

Mankind Pharma is a well-known pharmaceutical company in India that offers a wide range of healthcare products and services. The company is gearing up for its initial public offering (IPO), and it is set to commence on Tuesday, 25 April 2023 and conclude on Thursday, 27 April 2023.

The Mankind Pharma IPO aims to raise approximately Rs 4200 to Rs 4700 crores through offer for sale (40,058,844 shares) of Rs 1 each. The IPO will have a retail quota of 35%, QIB of 50%, and HNI of 15%. Retail investors can apply for up to 35% of the total shares offered in the IPO, qualified institutional buyers (QIBs) can apply for up to 50%, and high net-worth individuals (HNIs) can apply for up to 15%.

Mankind Pharma Limited Product Portfolio

Mankind Pharma Limited is a pharmaceutical company that was established in 1991. They are engaged in developing, producing, and marketing pharmaceutical formulations in various acute and chronic therapeutic areas. They also offer a range of consumer healthcare products. Mankind Pharma operates in several therapeutic areas such as anti-infectives, cardiovascular, gastrointestinal, anti-diabetic, neuro/CNS, vitamins/minerals/nutrients, and respiratory. The company boasts over 36 brands, including popular names such as Manforce (Rx), Moxikind-CV, Unwanted-Kit, Candiforce, Glimestar-M, Prega News, Codistar, and Telmikind-H, among others.

Mankind Pharma has one of the largest distribution networks of medical representatives in the Indian pharmaceutical market, with over 80% of doctors in India prescribing their formulations. The company has been recognised with several awards, such as The Best of Bharat Awards 2022 by exchange4media, Silver Medal from National Awards for Manufacturing Competitiveness Assessment 2021 instituted by International Research Institute for Manufacturing, and Silver Award for Good Health Brand at IHW Awards 2021. In addition, Mankind Pharma has been awarded the Best Condom Brand of the Year award at the Sex Brand Awards, Pharma OTC Company of the Year Award at the Pharma Excellence Awards 2018, Award for Best Design in Healthcare at the Healthcare Leadership Awards 2017, and Amity HR Excellence Award for Performance Management at the 8th Global HR Summit 2011. The company was ranked 4th in domestic sales during the Financial Year 2022.

About the IPO

Mankind Pharma, backed by private equity firm ChrysCapital, plans to raise around Rs 4,500-4,700 crore through an initial public offering (IPO) by the end of this month or early next month. This IPO is expected to be one of the biggest IPOs of FY24. ChrysCapital and the company’s promoters will dilute a 2.5% stake each, while Capital International will offload a 5% stake through the initial stake sale. The promoters hold the remaining 79% stake in the company. Capital International acquired an 11% stake in the company from ChrysCapital for $200 million in 2015, and a consortium led by ChrysCapital acquired a 10% stake for about $350 million in April 2018. Kotak Mahindra Capital Company, Axis Capital, IIFL Securities, Jefferies India, and JP Morgan India are the managers of the issue. The company filed its draft red herring prospectus (DRHP) for the IPO with markets regulator Sebi on September 15, 2022. A total of 40 million shares will be offloaded, and the prices will be decided through a book-building process.

The Objectives of Mankind Pharma Limited IPO

The primary objective of Mankind Pharma’s IPO is to facilitate an exit opportunity for its existing shareholders who are selling their shares through the offer for sale (OFS) route. This means that all the proceeds from the IPO will go directly to the selling shareholders in proportion to the shares offered for sale and not to the company. The company will not receive any proceeds from the IPO. The selling shareholders will have complete discretion over the utilisation of the funds raised from the sale of their shares. It is worth noting that an IPO that is entirely an offer for sale (OFS) is a common practice in the Indian market, where existing shareholders seek to monetise their holdings in a company by selling their shares to the public.

Financial Performance (In Crore)

Important Dates for Mankind Pharma Limited IPO

Promoters of the Company

Mankind Pharma Limited has multiple promoters, including Ramesh Juneja, Rajeev Juneja, and Sheetal Arora. Additionally, three family trusts hold stakes in the company: Ramesh Juneja Family Trust, Rajeev Juneja Family Trust, and Prem Sheetal Family Trust. These promoters and family trusts hold a combined 79% stake in the company, with private equity firms ChrysCapital and Capital International holding the remaining stakes. As part of the upcoming IPO, ChrysCapital and the company’s promoters will dilute a 2.5% stake each, while Capital International will offload a 5% stake.

How to Apply

To apply for the Mankind Pharma Limited IPO click 

How to Check Allotment Status

The registrar for Mankind Pharma Limited IPO is KFin Technologies Limited. To check your allotment status, please click on this link https://karisma.kfintech.com/

FAQs

1. What is the objective of Mankind Pharma Limited IPO?

The primary objective of Mankind Pharma’s IPO is to facilitate an exit opportunity for its existing shareholders who are selling their shares through the offer for sale (OFS) route. This means that all the proceeds from the IPO will go directly to the selling shareholders in proportion to the shares offered for sale and not to the company. The company will not receive any proceeds from the IPO.

2. What is the price band for the Mankind Pharma Limited IPO?

The price band for the Mankind Pharma Limited IPO is yet to be announced. The prices will be decided through a book-building process.

3. How much can retail investors apply for in the Mankind Pharma Limited IPO?

Retail investors can apply for up to 35% of the total shares offered in the IPO.

4. Who are the promoters of Mankind Pharma Limited?

The promoters of Mankind Pharma Limited are Ramesh Juneja, Rajeev Juneja, and Sheetal Arora. Additionally, three family trusts hold stakes in the company: Ramesh Juneja Family Trust, Rajeev Juneja Family Trust, and Prem Sheetal Family Trust.

5. How to check the allotment status for the Mankind Pharma Limited IPO?

The registrar for Mankind Pharma Limited IPO is KFin Technologies Limited. You can check your allotment status by visiting their website and entering your PAN or application number.