Mankind Pharma IPO: Key Highlights

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Mankind Pharma IPO

Mankind Pharma IPO

Pharmaceutical and healthcare products company Mankind is coming up with its IPO. Mankind has set the IPO price band between Rs 1,026 - Rs 1,080 per share. The total Mankind IPO size is Rs 4,326 crores and it will begin on April 25, 2023 and close on April 27, 2023.

Mankind Pharma: IPO details

  •  IPO will be purely an offer-for-sale (OFS) by the promoters Ramesh Juneja, Rajeev Juneja, Sheetal Arora. 
  • Some top investors will also participate in the OFS namely Cairnhill CIPEF Limited, Cairnhill CGPE Limited, Beige Limited and Link Investment Trust.
  • The OFS consists of selling 40,058,844 shares.
  • Kotak Mahindra Capital, Axis Capital, IIFL Securities, Jefferies and JPMorgan are the book running lead managers for the IPO.

Mankind IPO: Financial Performance (FY22)

  • Revenue from operation grew year-on-year by 25.2% to Rs 7,781.6 crores
  • Net profit rose by 12.5% from the previous year to Rs 1,452.96 crores.
  • The company reported a Return on Net Worth of 23.29% in the 2021-22 period, up from 26.80% in the prior year.
  • However, operating margin declined to 25.75% from 26.71% in the previous year.

Mankind Pharma IPO: Listed Peers

The company has many listed peers. Since Mankind operates in both the pharmaceutical as well as the healthcare products segment, the competition level is quite high. The comparison with its listed peers are as follows:

Name of the CompanyRevenue from operations (₹ in crores)RoNW 2022 (%)
Mankind Pharma Limited*7781.5523.29
Sun Pharmaceuticals Industries Limited38654.496.82
Cipla Limited21763.3412.08
Zydus Lifesciences Limited15265.2026.40
Torrent Pharmaceutical Limited8508.0413.06
Alkem Laboratories10634.1919.05
JB Chemicals & Pharmaceuticals Limited2424.2418.06
Eris Lifesciences Limited1347.0421.28
Ipca Laboratories Limited5829.7916.10
Abbott India Limited4919.2728.32
Glaxosmithkline Pharmaceuticals Limited3278.0363.64
Dabur India Limited10888.6820.75
Zydus Wellness Limited2009.106.38

(All revenue numbers are for the financial year ended March 31, 2022, RoNW: Return on Net Worth)

Mankind Pharma IPO: Unique Selling Propositions

Presence in Pharma and Healthcare Industry: Mankind Pharma is uniquely positioned to take advantage of the burgeoning growth that is to be witnessed in the healthcare and the pharmaceutical industries in the near future. The company is engaged in the formulation of various formulations used to treat a range of acute and chronic ailments.

Moreover, the company has various popular brands in the healthcare products sector like Manforce, Prega News and Gas-o-Fast among others.

Large Network: Mankind has access to a large number of healthcare professionals in the country. Notably, according to the company RHP, more than 80% of the doctors in India prescribed its formulations as of December 2022.

Moreover, it has an on-field network of f 11,691 medical representatives and 3,561 field managers, as of December 31, 2022.

Strong Research & Development: Mankind has a robust R&D team which comprises more than 600 scientists who focus on the development of unique formulations along with product development and improvement.

Moreover, the R&D investments by the company have only increased over the years with Rs ₹1,414.91 million, ₹1,707.88 million, ₹2,134.49 million spent in FY20, FY21 and FY22, respectively.

Mankind Pharma IPO: Risks

Revenue concentration: Unlike most pharma companies, Mankind Pharma is primarily focused in the domestic market. This can be gauged from the fact that for the financial year ended 31st March, 2022, the company derived close to 98% of its revenues from India.

In such a scenario, any adverse happening in either the regulatory or economical scenario in the country can affect its growth and smooth functioning of operations.

Supply of raw materials: Mankind Pharma is dependent on third-party suppliers for sourcing of materials. Notably, the company sources almost 5% of its raw materials from China. As a consequence, any unpalatable geopolitical developments with the country can affect the supply of raw materials for the company.

Regulatory concerns: The pharmaceutical industry is highly regulated. Any new regulations could affect the ability of the company to market its consumer healthcare products. Further, it could affect the development of new formulations for the company too, adversely affecting the company’s business operations.

Mankind Pharma IPO: About Company

  • Mankind Pharma is the fourth largest pharma company in terms of domestic sales and second largest in terms of sales volume.
  • 97.6% of its revenue comes from the domestic market as of March 31, 2022.
  • Notably, 80% of the doctors in India prescribed its formulations in Financial Year 2022.
  • Some of the popular brands of the company are Prega News, Manforce, Acne Star, Unwanted - 72 and Gas - o - Fast.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.

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