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Manforce condom maker Mankind Pharma files papers for IPO; Check details here

Manforce condom maker Mankind Pharma files papers for IPO; Check details here

The IPO size is expected to be approximately Rs 5,500 crore that may turn out to be the one of the largest ever issued by a domestic pharmaceutical company.

The IPO size is expected to be approximately Rs 5,500 crore that may turn out to be the one of the largest ever issued by a domestic pharmaceutical company. The IPO size is expected to be approximately Rs 5,500 crore that may turn out to be the one of the largest ever issued by a domestic pharmaceutical company.

The maker of Manforce condoms, Mankind Pharma, on Friday, said that it has filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).

The IPO size is expected to be approximately Rs 5,500 crore that may turn out to be the one of the largest ever issued by a domestic pharmaceutical company.  The offering of Mankind Pharma, also known for its popular home pregnancy test kit Prega News, comprises an offer for sale of 40,058,884 (over Rs 4 crores) equity shares of face value Rs 1 each by selling shareholders including the promoters and existing investors.

The offer for sale comprises of up to 3,705,443 equity shares by promoter selling shareholders Ramesh Juneja, up to 3,505,149 equity shares by Rajeev Juneja, up to 2,804,119 equity shares by Sheetal Arora, up to 17,405,559 equity shares by Investor Selling Shareholders Cairnhill CIPEF Limited, up to 2,623,863 equity shares by Cairnhill CGPE Limited, up to 9,964,711 equity shares by Beige Limited and up to 50,000 equity shares by Link Investment Trusṭ.

The company 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. Mankind is also focused on the domestic market, as a result of which its revenue from operations in India contributed to 97.60 per cent of its total revenue from operations for the FY22, which was one of the highest among peers, according to IQVIA, a pharma analysis and research company.

Mankind Pharma reported 15.33 per cent year-on-year (YoY) growth in net profit at Rs 1,084.37 crore for the year ended March 31, 2021. The figure stood at Rs 958.23 crore a year ago. On the other hand, net sales grew 13.16 per cent YoY to Rs 5,529.60 crore in FY21.

The company has looped in Kotak Mahindra Capital Company Limited, Axis Capital Limited, IIFL Securities Limited, Jefferies India Private Limited and J.P. Morgan India Private Limited as the Book Running Lead Managers. Having begun its journey in 1995, Mankind Pharma operates in 34 overseas destinations leveraging 16,000 employees. In January this year, the company forayed into critical care and launched Saviour Mankind, a dedicated division for life-saving injectables. The division has products ranging from Anti-infectives to Stroke and Trauma Management.

In February, Mankind Pharma entered into an agreement with Dr. Reddy’s Laboratories Ltd. to acquire two of its brands “Combihale” and “Daffy”.  Combihale is used for the treatment of asthma and chronic obstructive pulmonary disease. The market for this category is valued at ~ Rs 900 crore, growing at 14 per cent, according to IQVIA. The acquisition of Combihale is expected to strengthen Mankind’s presence in the inhalation respiratory market segment.  

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