Mankind Pharma claimed to be India’s fourth-largest pharmaceutical company in terms of domestic sales and third-largest in terms of sales volume
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Mankind Pharma IPO Opens April 25: Mankind Pharma, the first biggest IPO in terms of issue size, will be opening for subscription tomorrow, April 25. This will be the second initial public offering in the current calendar year after Avalon Technologies.
The public issue worth Rs 4,326.36 crore will remain open for bidding till 27th April 2023.
Mankind Pharma claimed to be India’s fourth-largest pharmaceutical company in terms of domestic sales and third-largest in terms of sales volume for MAT December 2022, as per IQVIA dataset.
The company develops and manufactures a diverse range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.
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Mankind Pharma IPO Dates
The offer will open for public on April 25, while the closing date would be April 27, 2023. The company will open its anchor book, a part of QIB portion, on April 24, a day before opening IPO.
Mankind Pharma IPO Price
The company has fixed Mankind Pharma IPO price band at Rs 1026 to Rs 1080 per equity share.
Mankind Pharma IPO Offer Size
The maiden public comprises only an offer for the sale of over 4 crore equity shares by promoters and investors, while there is no fresh issue portion.
The total fundraising by the company would be Rs 4,110.03 at the lower price band, and Rs 4,326.35 crore at the higher band.
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Promoters Ramesh Juneja, Rajeev Juneja, and Sheetal Arora will be offloading over 1 crore shares via offer for sale, and the rest of the shares in the OFS will be sold by investors Cairnhill CIPEF, Cairnhill CGPE, Beige, and Link Investment Trust.
Mankind Pharma IPO Objectives of Issue
The main objectives of the offer would be to carry out the offer for sale by the selling shareholders and achieve the benefits of listing the equity shares on the stock exchanges.
All the money raised via public issues will go to selling shareholders, and the company will not receive funds from the offer.
Mankind Pharma IPO Financial
The pharmaceutical company, which comes with a market capitalisation of Rs 43,264 crore, has reported a consolidated profit of Rs 996.4 crore for the nine-month period ended December FY23, falling 20 percent compared to year-ago period impacted by lower other income, higher employee cost and weak operating performance.
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Consolidated revenue for 9MFY23 grew by 10.6 percent year-on-year to Rs 6,697 crore, while on the operating front, it has recorded nearly 13 percent YoY drop in EBITDA (earnings before interest, tax, depreciation and amortisation) at Rs 1,484 crore with margin falling 598 basis points compared to corresponding period last fiscal.
However, for the year ended March FY22, the performance was better, though we have seen operating margin contraction. Profit for financial year 2021-22 increased by 13.3 percent to Rs 1,433.5 crore and revenue rose by 25.2 percent to Rs 7,782 crore compared to previous year.
EBITDA for the financial year 2021-22 at Rs 1,989.35 crore grew by 20.7 percent, but margin dropped 96 bps to 25.56 percent compared to FY21.
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Mankind Pharma IPO GMP today
According to market observers, Mankind Pharma shares are available at a premium of Rs 90 per equity share in grey market today.
Mankind Pharma IPO Allotment and Listing Dates
Mankind will finalise the IPO share allotment by May 3. The refunds will be credited to the bank accounts of unsuccessful investors by May 4, while the shares will be transferred to demat accounts of eligible investors by May 8.
It will make the debut on the BSE and NSE on May 9. Currently, its IPO shares traded at around 7 odd percent premium in the grey market, compared to its upper end of price band, analysts on anonymity said. The grey market is an unofficial platform for trading IPO shares.
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Kotak Mahindra Capital Company, Axis Capital, IIFL Securities, Jefferies India, and JP Morgan India are acting as the book running lead managers to the offer.
Should you Subscribe to the Mankind Pharma IPO?
On whether one should apply or not for the public issue, Reliance Securities says, “On FY23 annualized financials, the IPO is valued at 32.2x P/E at the upper price band which is higher than its peers. Mankind Pharma has several leading brands across multiple categories. It is primarily focused on the domestic pharmaceutical market which has healthy growth potential. However, the company is heavily dependent on the medical representative led sales model which has come under the radar of regulatory authorities due to certain unethical practices in the industry. Introduction of stricter norms regulating marketing practices by pharmaceutical companies could affect the company’s ability to effectively market its products.”
