Mankind Pharma IPO| Review

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Mankind Pharma Limited has come up with an initial public offer (IPO). It will open on March 25-27, 2023 at Rs.1,026-1,080 a share. The IPO issue size is around Rs.4,326.36 crores. The minimum bid will be for 13 shares and in its multiples thereafter.

Overview

Mankind Pharma Limited was incorporated in the year 1991. It is India’s fourth-largest pharmaceutical company in terms of Domestic Sales. The company is engaged in developing, manufacturing and marketing a diverse range of pharmaceutical formulations across various acute and chronic therapeutic areas. Its revenue from operations in India contributed to 97.60% of total revenue from operations for the Financial Year 2022.

The company is the youngest company among the five largest pharmaceutical companies in India, in terms of Domestic Sales in 2022. Mankind is one of the largest distribution networks of medical representatives in the Indian pharmaceutical market.

Website – https://www.mankindpharma.com/

Promoters

Ramesh Juneja – 2.64%	Rajeev Juneja – 2.50%
Sheetal Arora – 5.97%	Ramesh Juneja Family Trust – 20.81%
Rajeev Juneja Family Trust – 19.95%	Prem Sheetal Family Trust – 15.42%

Promoter Holding

Pre-Issue Shareholding – 79.00%

Post-Issue Shareholding –

Strength & Weakness

Strengths	Weaknesses
Domestic-focused business of scale	Significant revenue from limited no. of markets
Several products in a portfolio	Stricter norms regulating marketing practices
Established consumer healthcare franchise	Related-party transactions in the past
Pan-India market and distribution coverage	Exposed to government price controls
Focus on affordability and accessibility	Operations are labor intensive
Professional management team	Competitive market

Products

Manforce Condoms	Prega News
Gas-O-Fast	Nurokind
Telmikind	Dydroboon

Competitors

Alkem Laboratories	Abbott India
Aristo Pharmaceuticals	Cipta Limited
Eris Lifesciences	Zydus Lifesciences
Ipca Laboratories	Lupin Limited
Sun Pharmaceuticals	Torrent Pharmaceuticals

Company Financials

Year	Revenue (in Crore)	Profit (in Crore)
31-Mar-2020	5,975.65	1,056.15
31-Mar-2021	6,385.38	1,293.03
31-Mar-2022	7,977.58	1,452.96
30-Dec-2022	6,777.82	1,015.98

Objects of Issue

The company will not receive any proceeds from the Offer and all the Offer Proceeds will be received by the Selling Shareholders, in proportion to the Offered Shares sold by the respective Selling Shareholders as part of the Offer.

Mankind Pharma IPO Lot Size

Application	Lot	Shares	Amount
Retail (Min)	1	13	Rs.14,040
Retail (Max)	14	182	Rs.1,95,560
S-HNI (Min)	15	195	Rs.2,10,600
B-HNI (Max)	72	936	Rs.10,10,880

Mankind Pharma IPO Details

IPO Opening Date	April 25, 2023
IPO Closing Date	April 27, 2023
Face Value	Rs.1 per Equity Share
IPO Price	Rs.1,026-1,080 per share
Market Lot	13 shares
Minimum Order Quantity	13 shares
Listing At	NSE, BSE
Fresh Issue	–
Offer for Sale	40,058,844 shares
Issue Size	Up to Rs.4,326.36 Crore
QIB Shares Offered	50% of the offer
Retail Shares Offered	35% of the offer
NII/HNI Shares Offered	15% of the offer

Mankind Pharma IPO Timetable

IPO Date	April 25-27, 2023
Allotment Date	May 03, 2023
Initiation of Refunds	May 04, 2023
Credit of share to Demat a/c	May 05, 2023
IPO Listing Date	May 08, 2023