- Three-day IPO will open for subscription during April 25-27
- Bidding for anchor investors will open on April 24
- Bids can be made for a minimum of 13 Equity Shares and in multiples of 13 Equity Shares thereafter
- The company’s IPO is entirely an offer for sale (OFS) of 40,058,844 equity shares by promoters and other existing shareholders.
NE BUSINESS BUREAU
AHMEDABAD, APR 21
Country’s fourth-largest drug maker Mankind Pharma on Thursday said it has fixed a price band of Rs 1,026-1,080 a share for its Rs 4,326-crore initial public offering (IPO).
The three-day IPO will open for subscription during April 25-27, and the bidding for anchor investors will open on April 24, the company officials announced.
The company’s IPO is entirely an offer for sale (OFS) of 40,058,844 equity shares by promoters and other existing shareholders.
Those selling shares in the OFS are promoters Ramesh Juneja, Rajeev Juneja and Sheetal Arora. Besides, Cairnhill CIPEF, Cairnhill CGPE, Beige Limited, and Link Investment Trust will participate in the OFS.
Since the IPO is completely an OFS, the company will not receive any net proceeds from the issue and the entire net proceeds will go to the selling shareholders.
At the upper end of the price band, the IPO size is estimated at Rs 4,326 crore.
Half of the issue size has been reserved for qualified institutional buyers, 35 percent for retail investors and the remaining 15 percent for non-institutional investors.
Rajeev Juneja, Vice Chairman and Managing Director, Mankind Pharma Ltd, said, “We spend 2 to 2.5 percent of our revenue for research and development as we cater to only the domestic market. The company is primarily focused on the domestic market, which contributed to 97.6% of total revenue from operations for the financial year 2022. On the chronic side, its contribution is 34%. Even during the pandemic period we hired staffers.”
Mankind Pharma is engaged in developing, manufacturing and marketing a diverse range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.
Apart from its popular Manforce Condoms, Prega News, and Unwanted-72 brands, Mankind Pharma has also established a range of consumer healthcare brands in categories such as antacid powders (Gas-O-Fast), vitamin and mineral supplements (Health OK brand), and anti-acne preparations (AcneStar brand), among others.
As of December 31, 2022, the company’s net profit stood at Rs 1,015.98 crore, and revenue from operations was at Rs 6,696.78 crore. Mankind has shown a consistent upside in financial results between FY22 to FY20. Total income climbed to Rs 7,977.58 crore in FY22 versus Rs 6,385.38 crore and Rs 5,975.65 crore in FY21 and FY20. PAT has jumped to Rs 1,452.96 crore in FY22 compared to Rs 1,293.03 crore in FY21 and Rs 1,056.15 crore in FY20.
Kotak Mahindra Capital Company, Axis Capital, IIFL Securities, Jefferies India and JP Morgan India are the book-running lead managers to the issue. The equity shares of the firm will be listed on May 9 on the BSE and NSE.
