Mankind Pharma files for up to $1 bn public issue


NEW DELHI :  & Swaraj Singh Dhanjal


ChrysCapital-backed Mankind Pharma will seek to raise $750 million-$1 billion through an initial public offering (IPO), according to two people aware of the matter. The public issue will see the promoters and investors pare their stakes in the New Delhi-based maker of condoms and antacids.

Mankind has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for the IPO, which will comprise an offer for sale of 40 million equity shares.

Mankind founder Ramesh Juneja will sell about 3.7 million shares, followed by other promoters Rajeev Juneja and Sheetal Arora who will sell about 3.5 million and 2.8 million shares respectively, according to the DRHP.

Investor Capital International through its affiliates Cairnhill CIPEF and Cairnhill CGPE Ltd, which owns a 11% stake in Mankind, will pare its stake by selling 20 million shares. In addition, Beige Ltd and LinkInvestment Trust, affiliates of ChrysCapital, will partially reduce their holdings by selling about 10 million shares. Private equity firm Capital International had bought the 11% stake in Mankind from ChrysCapital for $200 million. In April 2018, ChrysCapital again took a 10% stake in Mankind for about $350 million.

Currently, the promoter and promoter group own about 79% stake in the company.

“The company will not receive any proceeds from the offer. The offer is an offer for sale of 40,058,844 equity shares by the selling shareholders. The entire proceeds from the offer will be paid to selling shareholders in proportion of the equity shares offered by the selling shareholders in the OFS,” according to the DRHP.

Kotak Mahindra, Axis Capital, IIFL Securities, Jefferies and JP Morgan are the book running lead managers for the IPO. Founded in 1991, Mankind offers several consumer healthcare products including emergency contraceptives Unwanted 72, Manforce condoms, Prega-News, Gas-o-Fast ayurvedic antacids and skin ointment Acnestar, with a focus on the Indian market.

The company had reported an operating revenue of 7,781.56 crore in the financial year ended 31 March, 2022, 25% higher than the previous year. It reported a net profit of 1,452.96 crore in FY22.

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