Mankind Pharma Aims To Raise Rs 4,700 crore through IPO

Mankind Pharma, backed by PE firm ChrysCapital, is in hopes to collect Rs 4,500-4,700 through an Initial Public Offering (IPO). The IPO is expected to go public at the end of this month or at the beginning of the following month.

According to a source close to the development, “The company is looking to launch the  IPO by the end of this month, depending on regulatory approvals. This would perhaps be one of the biggest IPOs of FY24 and will come at a time when fundraising from the capital markets is gaining steam. The firm is awaiting final approvals from the regulator.”

ChrysCapital and the company’s promoters will each dilute 2.5% of their ownership, and Capital International will sell 5% of its ownership through the inaugural stake sale. ChrysCapital currently owns 10% of the business, Capital International 11%, and the promoters own the remaining 79%.

As their investment tenure in the business is coming to an end, the PE investors, who are holding stakes through affiliated firms, are partially exiting, they added. ChrysCapital had sold Capital International an 11% stake in the business in 2015 for $200 million, and a consortium led by ChrysCapital subsequently purchased a 10% stake for about $350 million.

Draft Red Herring Prospectus (DRHP)

On September 15, 2022, the company submitted its DRHP for IPO to the market regulator Sebi. The DRHP stated that Mankind Pharma would sell 40 million shares in total, with the values being determined by a book-building procedure. The company’s promoters, including Chairman Ramesh Juneja, MD Rajeev Juneja, and CEO Sheetal Arora, will also sell their stakes in addition to the PE companies. The issuance is being managed by Kotak Mahindra Capital Company, Axis Capital, IIFL Securities, Jefferies India, and JP Morgan India.

Mankind Pharma, one of the biggest distribution networks of medical representatives in the Indian pharmaceutical market, has established 36 brands in the pharmaceutical industry. Over 80% of physicians in India recommended its formulations during the fiscal year 2022.

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