Mannkind Pharma IPO: Mankind Pharma's share sale via initial public offering (IPO) will begin today and end on April 27, Friday. The company is planning to raise Rs 4,326 crore from the IPO which is purely an offer for sale (OFS) by its promoters Ramesh Juneja, Rajeev Juneja and Sheetal Arora. Besides, Cairnhill CIPEF, Cairnhill CGPE, Beige Limited, and Link Investment Trust.
Since the IPO is completely an OFS, the company will not receive any net proceeds from the issue and the entire net proceeds will go to the selling shareholders.
“Mankind Pharma is a well-known and established pharmaceutical company that offers pharmaceuticals as well as several consumer healthcare products. The company has pan-India distribution with a focus on affordability, accessibility, and strong brand recall. In the past three years, the company has demonstrated robust growth in its financial performance, with a near doubling of its net worth and a stable increase in revenue and net profit. Furthermore, the company has strategies to increase its presence in the chronic therapeutic area and grow the consumer healthcare business,” brokerage firm Swastika Investmart said in a report.
“However, the pharmaceutical industry is fiercely competitive, and secondly, regulatory risk and stricter norms pose a potential challenge. Coming to the IPO valuation, the issue's P/E ratio of 30x appears fully priced, and given the pure offer for sale nature of the issue, only high risk investors are advised to consider a long-term investment in this,” the brokerage firm added.
"Mankind Pharma benefits from its strong foothold in domestic branded formulations with emphasis on affordable product offerings. At the upper price band, it is valued at 32.5 times price-to-earnings (PE) on annualised FY23E EPS of 33.2. We assign subscribe rating on the back of opportunities from its newer acquired products and its plan to backward integrate in its power brands and structural preference for domestic branded formulations among broader healthcare themes," brokerage firm ICICI Direct said in a research note.
"At the upper price band, MPL is available at PE of 33 times its expected FY23 EPS. As at FY22, the D/E stands at 0.09 times while its Net Working Capital Cycle was at 49 days. We believe that MPL’s market leadership and brand recognition coupled with Management’s bet on the recent acquisition of Panacea Biotech’s formulations may provide a huge growth opportunity for the company. We have a subscribe recommendation to this issue," brokerage firm Aditya Bira Capital said.
Mankind Pharma Price Band
Mankind Pharma is planning to sell shares in the price band of Rs 1,026-1,080 per share and a retail investor can bid for minimum one lot of 13 shares and up to maximum of 14 lots. At the upper end of the price band, one lot of Mankind Pharma will cost Rs 14,040.
The company has reserved 50 per cent of shares in the IPO for qualified institutional buyers (QIBs) which include banks, FIIs and financial institutions, 35 per cent shares in the IPO are reserved for retail investors and 15 per cent are set aside for non-institutional investors (NIIs) which include high net worth individuals (HNIs).
Kotak Mahindra Capital Company, Axis Capital, IIFL Securities, Jefferies India and JP Morgan India are the book running lead managers for the IPO while KFin Technologies in the registrar.
Mankind Pharma is engaged in developing, manufacturing, and marketing a diverse range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.
It has established several differentiated brands in condoms, pregnancy detection, emergency contraceptives, antacid powders, vitamin and mineral supplements, and anti-acne preparation categories.
It has a pan-India marketing presence and operates 25 manufacturing facilities across the country.
