Mankind Pharma plans to enter the capital markets on Tuesday, 25 April, with an Initial Public Offer (IPO) of 40,058,844 equity shares in a price band of Rs 1,026 to 1,080 per share, constituting 10% of the company’s share capital. Of this, 2.5% is an offer for sale (OFS) from the promoters and the rest is an OFS from private equity funds ChrysCapital and Capital International.
Addressing a news conference in Ahmedabad on Thursday, vice-chairman and managing director Rajeev Juneja said that Mankind Pharma has opted for a 100% OFS since it is a zero-debt company with healthy cash flows and does not need funds at present. “The main objective of the IPO is to give our investors an exit. An added benefit is that going public will make us a more accountable Board-run company and help us build an institution,” he said.
Though it makes a range of pharmaceutical formulations, Mankind is best known as the owner of the Manforce brand of condoms (a market leader, with a 30% market share), PregaNews brand pregnancy test kit (also a market leader, with 80% market share) and Unwanted brand pregnancy termination kit (market share: 72%). The company logged revenues of Rs 7,782 crore in FY22 and Rs 6,697 crore in the first nine months of FY23. Profit after tax was Rs 1,453 crore for FY22 (profit margin 19%) and Rs 1,016 crore (profit margin 15%) in the first nine months of FY23.
The 27-year-old Delhi-based company, which started out in Meerut, now has 25 manufacturing plants, of which the largest unit is in Sikkim. It has 18 units located in Himachal Pradesh, where there are numerous tax breaks available to pharma companies. Mankind Pharma is focused on the domestic market, which constitutes 98% of sales. Of this, 35% comes from North India, 19% from the East and 23% each from the West and South. Asked how Mankind is doing in the competitive pharma market of Gujarat, Mr Juneja said the company has yet to make a mark in the State. “We know there is scope for doing better in Gujarat and we are trying our best,” he said.
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