The company has fixed a price band of Rs 1,026-1,080 for its IPO, which is completely an offer for sale (OFS) of 40 million equity shares by promoters and other existing shareholders.
Under the OFS, promoters Ramesh Juneja, Rajeev Juneja and Sheetal Arora will offload shares. Since the IPO is completely an OFS, the company will not receive any net proceeds from the issue and the entire amount will go to the selling shareholders.
At the upper end of the price band, the IPO size is estimated at Rs 4,326 crore and the company is seeking a valuation of Rs 43,264 crore.
According to market sources, the company’s shares are commanding a premium of Rs 68-70 in the unlisted market, while investors await the action on anchor investors’ part.
However, it is important to note that grey market premiums are just an indicator as to how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
Mankind Pharma is the fourth-largest Indian pharmaceutical company in terms of domestic sales and third-largest in terms of sales volume for moving annual total as of December 2022.It has a pan-India marketing presence and operates 25 manufacturing facilities across the country. As of December 2022, the company had a team of over 600 scientists and a dedicated in-house R&D centre with four units located at IMT Manesar, Gurugram and Thane.
At the higher end of the price band, the shares of Mankind Pharma are valued at 30x FY22 EPS. According to Sharekhan, pharma companies on an average quote a P/E of 25x/22x FY24e/FY25e.
The brokerage expects the company’s strong set of brands, focused approach to its chronic portfolio via recent acquisitions, launches and differentiated pipeline products to be key positives.
The company has posted a net profit of Rs 996 crore for the nine months ended December 2022 period, which is down from Rs 1,243 crore in the same period of preceding year. The company’s revenue from operations for the same period rose nearly 11% to Rs 6,697 crore.
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