Mankind Pharma Share Price Dip 4% after ₹6,395 Cr Block Deal News

On December 12, a mega block deal worth ₹6,395 crore took place on the exchanges involving Mankind Pharma. Approximately 8.7% equity, equivalent to 3.5 crore shares, changed hands in this transaction. As of 9:25 am, Mankind Pharma shares were trading 4% lower at ₹1,841 on the NSE.

Key Players in the Deal

While the identities of the buyers and sellers remain undisclosed, as per the report on December 11 three prominent private equity funds - Chrys Capital, Capital Group, and Everbridge Partners - were looking to reduce their stake in the drugmaker.

The base deal size targeted a stake sale of around $592 million, with the possibility of an upsize option to elevate the deal size to $677 million. Mankind Pharma's ₹4,326-crore IPO, marked one of the most offerings by a domestic pharmaceutical player since Gland Pharma's ₹6,480-crore issue in 2020.

Mankind Pharma debuted on the stock exchanges on May 9 this year, raising a total of ₹4,326.36 crore through its primary stake sale. During the initial public offering (IPO), the company offered its shares for ₹1,080, listed at a 20% premium to its IPO price. Over the last six months, the stock has surged by around 30%, Presently, the stock is trading at 70% above its issue price reflecting the company's consistently strong performance in the domestic pharma market.

Mankind Pharma's monthly outlook is positive, with a bullish trend. However, after reaching ₹2039, there's profit taking observed on both monthly and daily charts. A key support level lies around ₹1700, providing stability during corrections.

Overview & Financial

Mankind Pharma, the fourth-largest pharma company in domestic sales, is renowned for manufacturing popular brands such as Manforce, PregaNews, and Unwanted 72, all of which enjoy immense popularity among consumers. 98% of the company's sales are derived from the Indian market.

Established in 1991, Mankind Pharma is actively involved in creating, producing, and promoting pharmaceutical formulations for various health conditions, both acute and chronic. They also offer a variety of consumer healthcare products and set them apart is their network of medical representatives.

In the second quarter, Mankind Pharma reported a consolidated net profit increase of 21%, reaching ₹511 crore. Revenue from operations also saw an uptick, rising from ₹2,425 crore to ₹2,708 crore in the year-ago period.