Mankind Pharma IPO Summary
The IPO for Mankind Pharma begins on April 25 and ends on April 27. Up to 40.06 million shares with a face value of Rs. 1 are included in the issuance, bringing the total amount raised to Rs. 4326.36 crores. Ramesh Juneja will sell up to 3.71 million shares in the OFS, 3.51 million shares from Rajeev Juneja, 2.80 million shares from Sheetal Arora, and 2.62 million from Cairnhill CIPEF Ltd, 9.96 million shares from Beige ltd, and 50,000 shares from Link Investment Trust. On May 8, the issue will be placed on the markets, and on May 3, the shares will be distributed. The company has fixed the lot size and price range at 13 shares per lot and Rs. 1026 to 1080 per share, respectively. The lead managers for the IPO areJP Morgan, Jefferies, Kotak Mahindra Capital, IIFL Capital, and Axis Capital.
The Objective of the Mankind Pharma IPO
The issue’s net proceeds will be used for the following purposes:
- Execute the Offering Shareholders’ Offer to Sell 40,058,844 Equity Shares.
- Enjoy the advantages of listing equity shares on stock exchanges.
Financial Performance
For the nine months that were determined in December 2022, Mankind reported a net profit of Rs. 996 crores, down from Rs. 1,243 crores in the same period the year prior. The company’s operating revenue increased by about 11% to Rs 6,697 crore for the same period.
GMP
Market sources claim that Mankind Pharma shares may be purchased in the unlisted market for a premium of Rs 80.
Mankind Pharma IPO Key Points
Strengths
- Scalable domestic business with potential for expansion
- Recognised consumer healthcare franchise with a known brand. In terms of domestic sales for MAT December 2022, many medications in the portfolio are ranked among the top 10 in several important therapeutic categories.
- coverage of the whole Indian market and distribution network with an emphasis on accessibility and affordability
- 25 manufacturing and four R&D sites with expertise in several important therapeutic fields
Risks
A rise in the price of such basic components and completed formulations, or delays, interruptions, or decreases in the supply of such products from third-party manufacturers and suppliers
- It operates in a few markets, but these areas account for a sizable revenue.
- The introduction of stronger regulations governing marketing practices may impact pharmaceutical businesses’ capacity to promote their goods effectively.
Due to the failure of some therapeutic areas to provide a larger share of India’s overall income or the increased availability and increased acceptability of rival products.
Keeping the fundamentals of the company in mind, we recommend a Buy in the IPO.