IPO listed on 9 May'23
Mankind Pharma Ltd
Minimum Investment
₹ 14,040 / 13 shares
Grey market premium
₹ 90 (8% premium)
Issue price
₹ 1080
Listing price
₹ 1,300
% since launch
Listing on
May 9. 2023
Our Verdict:
Subscribe
- Mankind Pharma has a unique India-focused business (~98% of sales) and is India’s 4th largest pharma company by revenue, No. 1 in terms of prescriptions generation and No. 2 in volumes.
- It provides great combination of growth (sales CAGR of ~16% over FY20-22) and healthy return ratios (25%+).
- Its consumer healthcare brands are among the market leaders in their respective categories.
- Valuation-wise, the issue appears fully priced. Mankind Pharma is a good long-term bet and investors may subscribe with a long-term perspective.
About the company
Founded in
3 Jul'91
Managing director
Rajeev Juneja
- India’s 4th largest pharma company in terms of domestic sales and 3rd largest in terms of sales volume for Moving Annual Total (MAT) December 2022.
- Present in several acute and chronic therapeutic areas in India, including anti-infectives, cardiovascular, gastrointestinal, anti-diabetic, neuro/CNS, vitamins/minerals/nutrients and respiratory.
- Pan-India marketing presence, with a field force of 11,691 medical representatives and 3,561 field managers.
STRENGTHS
- Domestic sales have grown at 1.3 times the growth rate of the Indian Pharma Market (IPM) between FY2020 and December 2022.
- Between FY2020 and MAT December 2022, their market share has grown from 4.1% to 4.3%, which represents the fastest growth among the 10 largest corporates in the IPM.
- Its consumer healthcare brands in the condoms (Manforce), pregnancy detection (Prega News) and contraceptives (Unwanted-72) have ~30-80% market share in their respective categories.
- Successfully launched ‘Dydrogesterone’ in India in 2019, which is used to treat female infertility and now ranks 2nd in this category with over 22% market share.
- Share of chronic therapies in Mankind’s India business has improved from 28% in FY18 to 33% in FY22, with the company now ranking 3rd/4th in the covered anti-diabetic/cardiac markets.
RISK FACTORS
- Margin contraction: For 9MFY23, EBITDA has fallen ~13% to Rs 1,484 crore with margin contracting by 598 basis points compared to the previous corresponding period.
- According to the management, this is attributed to its one-time adjustments for the recent takeovers and sluggish global trends following the Russia-Ukraine war. However, management is confident of regaining its established trends of earnings post streamlining the operations.
Issue details
Issue type
Mainstream
Issue size
₹ 4,326.36 crore
Fresh Issue
₹ -
OFS
₹ 4,326.36 crore
Price range
₹ 1,026 - 1,080
Lot size
13 shares
Issue Objective
- The main objects of the offer are to carry out the offer for sale by the selling shareholders and achieve listing benefits.
- All the money raised via public issues will go to selling shareholders and the company will not receive funds from the offer.
Dates
Bidding open
25 Apr'23
Bidding close
27 Apr'23
Allotment date
3 May'23
Refund date
4 May'23
Listing
9 May'23
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.