Mankind Pharma plans IPO with $8 billion valuation

In the last few months we have had a slew of pharma IPOs being planned like Macleods Pharma, Emcure Pharma etc. It is on these lines that Mankind Pharma is also planning an IPO shortly, although the company is yet to file its draft papers with SEBI.

Mankind is one of India’s biggest unlisted pharmaceutical companies and is backed by  Chrysalis Capital. Some of its top brands include Manforce Condoms, Kaloree 1 and Prega News.

Mankind Pharma already has an impressive roster of investors. Apart from Chrysalis Capital, there is Capital International which is backing Mankind Pharma as also there is the formidable Government Investment Corporation of Singapore.

In 2018, a consortium of Chrysalis Capital, GIC Singapore and Canadian Pension Fund had bought 10% stake in Mankind Pharma for $350 million, valuing the company at around $3.50 billion. 

However, if early reports are to be believed, four years later, Mankind Pharma could target an IPO in the valuation range of $8 billion to $10 billion. That would put the company in the ranks of the top notch pharma valuation plays in India. Since Mankind Pharma is already cash rich, it may not look at raising fresh funds.

Instead, it may only look to do an IPO through the offer for sale (OFS) route to give exit to some of its marquee early investors.
 

That would possibly mean that a 10% dilution would mean an IPO in the range of Rs.7,000 crore to Rs.7,500 crore. That would be bigger than the Rs.6,000 crore of Gland Pharma IPO in November 2020.

While the detail of the IPO are yet to be announced, the company is apparently at an advanced stage of appointing merchant bankers to manage the issue. Mankind has also been trying to expand its OTC products business for better margins.

Mankind Pharma is based out of Delhi and has been in existence for more than 27 years in this business. Its product palate includes prescription medicines, OTC products and veterinary medicine.

Apart from a strong India franchise, Mankind Pharma also has a robust global presence spread across more than 34 countries, principal among them being the US, Sri Lanka, Cambodia, Kenya, Cameroon, Myanmar, and the Philippines.

For FY21, Mankind Pharma had reported PAT of Rs.1,293 crore on sales revenues of Rs.6,385 crore, implying net profit margins of 20.25%. In FY21, Mankind Pharma had also reported EBITDA margins at a healthy level of 25.95%.

It may be recollected that just a month back, Mankind Pharma had acquired the formulations brands of Panacea Biotec in India and Nepal for a consideration of Rs.1,872 crore to venture into new therapeutic areas.

Currently, Mankind Pharma has a total of 21 manufacturing units that are spread across various locations including Paonta Sahib, Himachal Pradesh, Sikkim, Visakhapatnam and the state of Rajasthan.

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