scorecardCondom maker Mankind Pharma’s ₹4,326 crore IPO to open next week on April 25
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Condom maker Mankind Pharma’s ₹4,326 crore IPO to open next week on April 25

Condom maker Mankind Pharma’s ₹4,326 crore IPO to open next week on April 25
Stock Market4 min read
  • The IPO will comprise an offer for sale (OFS) of over 4 crore equity shares by the company's promoters and existing shareholders.
  • This will be the seventh IPO to be listed on exchanges in 2023 amid an uncertain macro environment.
  • The shares of the company are currently commanding a huge grey market premium, or GMP, of ₹100 per share.
  • Promoters selling shares include co-founders Ramesh Juneja and Rajeev Juneja, CEO Sheetal Arora, Cairnhill CIPEF, Cairnhill CGPE, Beige and Link Investment Trust.
Condom manufacturer Mankind Pharma is all set to open its ₹4,326 crore initial public offering (IPO) on April 25 and close it on April 27. This will be the seventh IPO to be listed on the exchanges in 2023 amid an uncertain macro environment.

The price band of the IPO is set at ₹1,026 - ₹1,080 per share. The shares of the company are currently commanding a huge grey market premium, or GMP, of ₹100 per share. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.

The IPO will comprise an offer for sale (OFS) of over 4 crore equity shares by the promoters and existing shareholders of the company, which sells Manforce condoms and Prega News pregnancy detection kits. The company will thus not receive any proceeds from the offer. Promoters selling shares include co-founders Ramesh Juneja and Rajeev Juneja, chief executive officer Sheetal Arora, Cairnhill CIPEF, Cairnhill CGPE, Beige Limited and Link Investment Trust.

The company’s shares will be allotted to investors on May 3 and will be listed on the stock exchanges on May 8.

The company manufactures a diverse range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.

Its wide range of offerings include condoms, pregnancy detection kits, emergency contraceptives, antacid powders, vitamin and mineral supplements and anti-acne preparations.
Financials of some famous brands owned by company

Domestic sales (Dec 2022)

% market share

Manforce (condom)

₹461 crore

29.6%

Prega News (pregnancy detection kit)

₹184 crore

79.7%

Unwanted-72 (emergency contraceptives)

₹108 crore

61.7%


It has 25 manufacturing facilities across Himachal Pradesh, Sikkim, Rajasthan, Andhra Pradesh, Maharashtra and Uttarakhand.

The company says that after India, its major markets are the US, Bangladesh, Sri Lanka and Nepal, and any developments in the pharmaceutical industry in these regions could impact on its business operations.

Besides, Mankind Pharma is exposed to government price controls which could negatively affect its results of operations. “In addition to normal price competition, the prices of certain of our products are or may be restricted by price controls imposed by governments and healthcare providers in India, or in other countries to which we export our products, which may limit the revenue we earn from certain of our products,” said the company in red herring prospectus.

The company is also looking to acquire brands and diversify its therapeutic portfolio.

“We aim to deepen our presence in our existing markets and facilitate our entry into new markets. We intend to strategically acquire brands and companies across key markets as well as explore in-licensing and co-development opportunities with other companies to diversify our therapeutic portfolio,” the company said in its DRHP.

Its products are sold in 20 countries, including the US, Latin America, Southeast Asia, Africa, the Middle East and the Commonwealth of Independent States (CIS).

Mankind Pharma’s profitability has grown over 37% in the last three financial years.
Year

Revenue from operations

Net profit

FY22

₹7,781 crore

₹1,452 crore

FY21

₹6,214 crore

₹1,293 crore

FY20

₹5,865 crore

₹ 1,056 crore



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