Mankind Pharma, the first big IPO in terms of issue size this financial year, opens today for subscription. This would be the second main board IPO in 2023 after Avalon Technologies.
Mankind Pharma IPO opens on April 25, and will close on April 27, 2023. The company opened its anchor book on April 24, a day before the IPO opens for retail investors.
Mankind Pharma has set IPO price band at Rs 1,026-1,080 per share. The maiden public comprises only an offer for the sale (OFS) of over 4 crore equity shares by promoters and investors. The total fundraising by the company would be Rs 4,326.35 crore at the higher band.
Mankind Pharma promoters Ramesh Juneja, Rajeev Juneja, and Sheetal Arora will be offloading over 1 crore shares via offer for sale (OFS) , and the rest of the shares in the OFS will be sold by investors Cairnhill CIPEF, Cairnhill CGPE, Beige, and Link Investment Trust.
Investors can bid for a minimum of 13 equity shares and in multiples of 13 shares thereafter. The company has reserved 50% of the offer size for QIBs, 15% for HNIs, and the remaining 35% for retail investors.
Mankind Pharma, which manufactures the popular condom brand Manforce Condoms, pregnancy test kit Prega News, and emergency contraceptive brand Unwanted-72, is supported by private equity firm Chrys Capital and Capital International
Mankind Pharma IPO shares were commanding a grey market premium (GMP) of Rs 90. The grey market is an unofficial platform for trading IPO shares. Mankind Pharma shares are expected to list with 8% gains.
Mankind Pharma, which manufactures the popular condom brand Manforce Condoms, pregnancy test kit Prega News, and emergency contraceptive brand Unwanted-72, is supported by private equity firm Chrys Capital and Capital International. It has a pan-India marketing presence.
Mankind Pharma reported a consolidated profit of Rs 996.4 crore for the nine-month period ended December FY23, falling 20% compared to the year-ago period impacted by lower other income, higher employee cost and weak operating performance. Consolidated revenue for 9MFY23 grew by 10.6% YoY to Rs 6,697 crore.
Currently, the total promoters and promoter group's stake in the company stands at 79%, and the rest is held by investors including Beige, and Cairnhill CIPEF. Ramesh Juneja is the Chairman and Whole-Time Director of Mankind, and Rajeev Juneja is the Vice-Chairman and Managing Director.
-Any intense competition in the company's key product or segment is likely to affect its future growth
-Any adverse observation from the USFDA could affect future product launches