Mankind Pharma IPO GMP, Price, Dates & Allotment Details 2023
Introduction
The Mankind Pharma IPO will open on April 25 and close on April 27, 2023. As per the DRHP filed with SEBI, the company intends to raise approximately ₹ 4,326.36 crores through this public offering, consisting of 400 lakhs shares with a face value of ₹ 10 each, which will be issued at a price of ₹ 1026 to ₹ 1080 per share
About Mankind Pharma Limited (“the Company”)
Incorporated in 1991. Mankind Pharma Ltd creates, produces, and sells a wide variety of pharmaceutical formulations for both acute and chronic conditions, as well as a number of consumer healthcare items.
Since the company is primarily concerned with its domestic market, its revenue from operations in India accounted for 97.60% of its overall revenue from operations in FY22. which was among the highest of the peers IQVIA recognised (being key pharmaceutical companies operating in similar therapeutic areas).
With the goal of offering high-quality products at reasonable prices, they operate at the nexus of the Indian pharmaceutical formulations and consumer healthcare industries. The company have a proven track record and experience in building and growing brands domestically. The company has created 36 brands in its pharmaceutical business that have each achieved over 500 million in domestic sales in FY22.
Mankind Pharma Limited is present in several acute and chronic therapeutic areas in India, including anti-infectives, cardiovascular, gastrointestinal, anti-diabetic, neuro/CNS, vitamins, minerals, nutrients, and respiratory.
As of March 31, 2022, it had a marketing presence over the whole country of India, with a field team of 11,196 medical representatives and 3,195 field managers. They have also established a significant distribution network in India, and, during FY22, the company sold its products to over 11,000 stockists and engaged with 75 clearings and forwarding (“C&F”) agents.
As of March 31, 2022, Mankind Pharma Limited employed 2,181 manufacturing workers across its 23 locations in India.
Noteworthy Highlight
- Mankind Pharma Limited has primarily grown organically and is the youngest company among the five largest pharmaceutical companies in India in terms of domestic sales in FY22.
- It has one of the largest networks of medical representatives in the Indian pharmaceutical market (IPM), and over 80% of doctors in India prescribed its formulations during FY22.
Objects of the Issue,
All of the offer proceeds will be received by the selling shareholders in proportion to the offered shares that each selling shareholder sold as part of the offer; the company will not receive any of the offer proceeds.
Financial Highlights (Restated Consolidated)
| Particulars | FY 2021-22 | FY 2020-21 | FY 2019-20 |
|---|---|---|---|
| Net Worth | 6,155 | 4,722 | 3,485 |
| Total Assets | 9,148 | 6,373 | 5,073 |
| Total Borrowings | 868 | 235 | 127 |
| Total Revenue | 7,978 | 6,385 | 5,976 |
| Profit After Tax | 1,453 | 1,293 | 1,056 |
- Company have experienced sustained growth and have consistently outperformed the growth of the IPM. Between FY20 and FY22, its domestic sales grew at a CAGR of approximately 16% from approximately ₹60,647 million to approximately ₹82,198 million, which is approximately 1.5 times that of the IPM, which grew at a CAGR of approximately 11% from approximately ₹1,503 billion to approximately ₹1,855 billion over the same period.
- Between FY22 and FY20, Domestic Sales grew fastest (at a CAGR of approximately 16%) among the 10 largest corporations in the IPM.
- Between FY22 and FY20, the average growth for the 10 largest corporates in the IPM (excluding our company) by domestic sales was approximately 11%, and the average growth for peers identified by IQVIA was approximately 11%.
IPO details: Mankind Pharma IPO
As per the DRHP filed with SEBI, a total of 400 lakhs shares will be offered as part of the offer for sale on the BSE, and NSE. The face value of the shares is ₹ 1. It will be a book-built issue, so there will be a price band rather than a price point, and the actual issue price will be discovered by building the book.
| Issue Type | Book built issue IPO |
| IPO Price | ₹ 1026 to ₹ 1080 per share |
| Face Value | ₹ 1 per share |
| Market Lot | 13 Shares |
| Issue Size | 40,058,844 shares (aggregating up to ₹ 4,326.36 crores) |
| Offer for Sale | 40,058,844 shares (aggregating up to ₹ 4,326.36 crores) |
| QIB Shares Offered | Not more than 50% of the net issue |
| NII (HNI) Shares Offered | Not less than 15% of the net issue |
| Retail Shares Offered | Not less than 35% of the net Issue |
| Listing At | BSE, NSE |
| Company Promoters | Ramesh Juneja, Rajeev Juneja, Sheetal Arora, Ramesh Juneja Family Trust, Rajeev Juneja Family Trust And Prem Sheetal Family Trust |
GMP: Mankind Pharma IPO
GMP, or grey market premium, is available on this page. The IPO GMP is updated on a day-to-day basis during the running period of the IPO, due to which the GMP rates fluctuate and stabilise after some time. GMP rates are not 100% guaranteed. Please click here for GMP details.
Tentative Dates: Mankind Pharma IPO
The issue opens for subscription on April 25, 2023, and closes for subscription on April 27, 2023 (both days inclusive). The basis of allotment will be finalized on May 3, 2023, and the refunds will be initiated on May 4, 2023. In addition, the demat credits are expected to happen on May 5th, 2023, and the stock will list on May 8, 2023, on the BSE, NSE s. The UPI mandate confirmation cut-off time is 5:00 PM on the issue closing day.
| Opening Date | April 25, 2023 |
| Closing Date | April 27, 2023 |
| Basis of Allotment | May 3, 2023 |
| Initiation of Refunds | May 4, 2023 |
| A credit of shares to Demat A/c | May 5, 2023 |
| Listing Date | May 8, 2023 |
Lot Size
The lot size of the Mankind Pharma IPO is 13 shares. A retail-individual investor can apply for up to 14 lots, i.e. 182 shares of ₹ 196,560.
| Applications | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Minimum) | 1 | 13 | ₹ 14,040 |
| Retail (Maximum) | 14 | 182 | ₹ 196,560 |
| S-HNI (Minimum) | 15 | 195 | ₹ 210,600 |
| S-HNI (Maximum) | 71 | 923 | ₹ 996,840 |
| B-HNI (Minimum) | 72 | 936 | ₹ 1,010,880 |
Promoters Holdings
| Pre-issue Shares Holdings | 79.00% |
| Post-issue Shares Holdings | – |
SWOT Analysis
| STRENGTHS | WEAKNESSES |
|---|---|
| 1. Scaled domestic-focused business with potential for further growth. 2. Growing faster than the rate of the IPM with a focus on volume-led growth. 3. Diversified portfolio with market-leading rankings across key therapeutic areas. 4. Established and grew a consumer healthcare franchise with brand recall. 5. Leveraged its corporate brand to build and scale brands. 6. Wide market and distribution coverage with a focus on affordability and accessibility. 7. Significant and diversified manufacturing and R&D capabilities. 8. Experienced and professional management team backed by private equity investors. | 1. Dependency on the Domestic market: The company derive a significant portion of its revenue from operations from a limited number of markets. 2. Business contains extensive reliability on medical representatives and field managers. 3. Dependency on the third party for the supply of raw material. 4. Capital intensive for future plans development. 5. The company does not have adequate insurance coverage. |
| OPPORTUNITIES | THREATS |
| 1. Focus on an increase in the volume of sales. 2. Increase its geographical presence. 3. Increase Covered Market presence including in chronic therapeutic areas. 4. Focus on increasing penetration in metro and Class I cities. 5. Focus on building alternative channels for growth. 6. Consumer Healthcare Business. International Business. | 1. Competitions from other players. 2. Extensive government regulations and stricter norms regulating marketing practices. 3. New entrants in the market. 4. There are outstanding legal proceedings involving Company, our Promoters, our Subsidiaries, and its Directors. |
Review [Apply]
As we know, Delhi-based pharmaceutical company Mankind Pharma has announced its IPO. The three-day initial public offering (IPO) is an offer for sale (OFS) of 40,058,844 equity shares, entirely by the promoters and other existing shareholders.
Since this IPO is purely an OFS, the company will not receive any net proceeds from the issue, and the entire net proceeds will go to the selling shareholders.
Manking Pharm’s product portfolio includes various established and several differentiated brands in the categories of condoms, antacid powders, pregnancy detection, emergency contraceptives, vitamin and mineral supplements, and anti-acne preparations. The company has a pan-Indian presence and operates 25 manufacturing facilities across the country.
Mankind Pharma primarily operates in the domestic market and has been performing well. If we analyse the growth between FY22 and FY20, home sales grew the fastest (at a CAGR of about 16%) among the 10 largest corporations in IPM. Mankind Pharma has become the youngest company among the five largest pharma companies in India in terms of domestic sales in FY22.
Speaking about the financial performance of the company, during FY22, FY21, and FY20, it has done a turnover of ₹ 7,978, ₹ 6,385 and ₹ 5,976 crores, respectively. It earned a profit of ₹ 1,453, ₹ 1,293, ₹ 1,056 during the same financial year. The percentage of profit growth is 12.38% from FY21 to FY22 and 22.44% from FY20 to FY21. The company has an established brand in the Indian market, which is also helpful for the future profit growth of the company.
The company has a weighted average earnings per share (EPS) of ₹ 32.71 for the last three years, and if we analyse the individual EPS this year, that stood at ₹ 35.78, ₹ 31.59, and ₹ 25.72 during FY 22, FY 21, and FY 20, which is good enough.
Mankind Pharma has a very good track record in the Indian pharmaceutical industry. It has achieved a good position in the pharmaceutical markets within a short span of time since its launch. The financial record of the company is good, and it is expected to be good with the growth of the company in the coming time. There is a great opportunity for growth in the pharmaceutical industry in the coming years. If you are planning to invest in this IPO, then it can be a good decision.
Miscellaneous Information
| Download Prospectus (PDF) | IPO DRHP |
| Company Contact Information | Mankind Pharma Limited 208, Okhla Industrial Estate Phase-III, New Delhi 110020 Phone: +91 11 4684 6700 Email: [email protected] Website: https://www.mankindpharma.com/ |
| IPO Registrar | KFin Technologies Limited Phone: 04067162222, 04079611000 Email: [email protected] Website: https://karisma.kfintech.com/ |
| IPO Lead Manager(s) | Kotak Mahindra Capital Company Limited Axis Capital Limited IIFL Securities Ltd Jefferies India Private Limited J.P. Morgan India Private Limited |
FAQ’s
What is Mankind Pharma IPO price?
The Mankind Pharma IPO price is ₹ 1026 to ₹ 1080 per share.
What minimum lot size can retail investors subscribe to?
The minimum investment size is one lot for retail investors. One lot of the Mankind Pharma IPO contains 13 shares of ₹ 14,040.
When will Mankind Pharma IPO allotment be available?
The finalization of the basis of allotment for the Mankind Pharma IPO will be done on May 3, 2023, and the allotted shares will be credited to your demat account by May 5, 2023. Check the Mankind Pharma IPO allotment status.
When will Mankind Pharma IPO list on exchanges?
The Mankind Pharma IPO shares listing date is May 8, 2023.
How many shares in Mankind Pharma IPO Offer are reserved for HNIs and retail investors?
The investors’ portion for QIB is 50% of the offer, NII (HNI) is 15% of the offer, and retail is 35% of the offer.
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