Mankind Pharma Limited IPO

Mankind Pharma plans to raise up to Rs 4326.36 crore through initial public offering (IPO). The IPO subscription will open on April 25 and close on April 27. The price band is fixed at Rs 1026 – Rs 1080 apiece.

The IPO consists of only Offer For Sale of more than four crore shares.  The face value is set at Re 1 per share. 


Company Summary

Mankind Pharma is India’s fourth largest pharmaceutical company in terms of domestic sales and third largest in terms of sales volume for MAT December 2022, according to its red herring prospectus. The company is engaged in developing, manufacturing and marketing a diverse range of pharmaceutical formulations across various acute and chronic therapeutic areas including anti-infectives, cardiovascular,
gastrointestinal, anti-diabetic, neuro/CNS, vitamins/minerals/nutrients and respiratory, as well as several consumer healthcare products.

The company said it has created 36 brands in their pharmaceutical business and each brand has achieved over Rs 500 million in domestic sales for MAT December 2022. The company’s highest selling brands are as follows: Manforce(Rx), Moxikind-CV, Dydroboon, Unwanted-kit, PregaNews, Amlokind-AT, Candiforce, Gudcef, Glimestar-M, Codistar, Nurokind-Gold, Nurokind-LC, Nurokindplus-RF, Telmikind-H, Cefakind, Telmikind, Unwanted-72, Vomikind, Monticope, and Telmikind-AM.

The pharmaceutical company has pan-India marketing presence, with a field force of 11,691 medical representatives and 3,561 field managers, as of December 31, 2022. The company has established a significant distribution network in India and, during the nine months ended December 31, 2022, it has sold their products to over 12,000 stockists and engaged with 75 clearing and forwarding (“C&F”) agents. The pharma firm has one of the largest distribution networks of medical representatives in the Indian pharmaceutical market (“IPM”) and over 80% of doctors in India has prescribed their formulations.

The company operates 25 manufacturing facilities across India, in Himachal Pradesh, Sikkim, Rajasthan, Andhra Pradesh, Maharashtra and Uttarakhand, and had 4,121 manufacturing personnel as of December 31, 2022. The company’s formulations manufacturing facilities have a total installed capacity of 42.05 billion units per annum across a wide range of dosage forms, including tablets, capsules, syrups, vials, ampoules, blow fill seal, soft and hard gels, eye drops, creams, contraceptives and other over-the-counter products, as of December 31, 2022.

The company has a dedicated in-house R&D centre with four units located in IMT Manesar, Gurugram, Haryana, and Thane (Maharashtra). Their R&D operations are supported by a team of over 600 scientists, including approximately 40 scientists who hold Ph.Ds. The company had filed one INDA for an anti-diabetic molecule, which is in phase I clinical trials. Additionally, it has two new chemical entity (“NCE”) molecules for autoimmune diseases and non-alcoholic steatohepatitis in pre-clinical stage.


Company Strengths

  • Domestic focused business with a potential for growth and scalability.
  • Domestic sales growing at 1.3 times the growth rate of the Indian pharmaceutical market between April 2019 and December 2022.
  • Several products in portfolio with top 10 rankings across key therapeutic areas.
  • Established consumer healthcare franchise with brand recall.
  • Leveraged its corporate brand to build strong brands that are scalable.
  • Covering entire India with robust distribution network and focus on affordability and accessibility.
  • The company operates 25 manufacturing units across India and four research and development facilities with capabilities across key therapeutic areas.
  • Professional management team with industry experience and also backed by private equity investors.

Company Financials

Period Ended

9MFY23

FY22

FY21

FY20

Total Assets (Rs in crore)

9,273.75

9,147.74

6,372.63

5,073.29

Total Revenue (Rs in crore)

6,777.82

7,977.58

6,385.38

5,975.65

Profit After Tax (Rs in crore)

1,015.98

1,452.96

1,293.03

1,056.15

EBITDA (Rs in crore)

1,493.61

2,004

1,659.78

1,448.35

PAT margin (%)

15.17

18.67

20.81

18.01

EBITDA margin (%)

22.3

25.75

26.71

24.69

RoCE (%)

16.58

25.5

30.14

35.86

RoE (%)

14.89

25.99

30.3

31.75

Purpose of the IPO

The object of IPO is to carry out the Offer for Sale of 4,00,58,844 equity shares by the selling shareholders and achieve the benefits of listing of the equity shares on the stock exchanges. 

The company expects the listing of equity shares will enhance their visibility as well as brand and provide liquidity to its existing shareholders. The company will not receive any proceeds from the sale of equity shares.


Company Promoters

Promoters of the company are Ramesh Juneja, Rajeev Juneja, Sheetal Arora, Ramesh Juneja Family Trust, Rajeev Juneja Family Trust, and Prem Sheetal Family Trust.


IPO Details

IPO Opening Date

April 25, 2023

IPO Closing Date

April 27, 2023

Face Value

Re 1 per share

Price

Rs 1026 – Rs 1080 per share

Lot Size

13 shares

Total Issue Size

4,00,58,844 shares aggregating up to Rs 4,326.36 crore

Offer for Sale

4,00,58,844 shares aggregating up to Rs 4,326.36 crore

Issue Type

Book Built Issue IPO

Listing At

BSE, NSE

IPO Lot Size

Application

Lots

Shares

Amount

Retail (Minimum)

1

13

Rs 14,040

Retail (Maximum)

14

182

Rs 196,560

Small HNI (Minimum)

15

195

Rs 210,600

Small HNI (Maximum)

71

923

Rs 9,96,840

Large HNI (Minimum)

72

936

Rs 10,10,880

Allotment Details

Event

Tentative Date

Allotment of shares

May 3, 2023

Initiation of refunds

May 4, 2023

Credit of shares to demat account

May 5, 2023

Listing date

May 9, 2023

To check allotment status, click here