IPO Update: Manforce Parent Firm Mankind Pharma Preparing to Start IPO
Shivani Bhati | Mar 31, 2022 |
IPO Update: Manforce Parent Firm Mankind Pharma Preparing to Start IPO
“Earlier this week, pitches were held for Mankind Pharma’s projected initial public offering. This is early days, and the listing is targeted at facilitating a partial exit for its investors who are looking for returns in a short period of time,” one of the cited individuals stated.
Capital International and Singapore’s GIC are among the drugmaker’s backers, in addition to ChrysCapital. Capital International paid $200 million to ChrysCapital in 2015 for an 11 percent share in Mankind Pharma. A ChrysCapital-led consortium, which comprised GIC and CPPPIB, staged a spectacular comeback in April 2018, purchasing a 10% interest for about $350 million.
According to a second source, Mankind Pharma’s value might be somewhere between $8 billion and $10 billion.
“Because it’s a cash-rich company, the IPO is expected to be dominated by an OFS, or offer for sale, component by the investors.”
A third source corroborated the above valuation range and noted that the fast-growing company had grown to the size and scale required for a public offering. He predicted that the deal’s i-banking syndicate will be finalized in April.
If a minimum dilution of 10% is taken into account, the proposed IPO could be worth between $800 million and $1 billion, making it one of the largest ever in the pharmaceutical sector.
Gland Pharma holds the current record in the category, having raised $869 million in an IPO in November 2020.
According to a fourth source, as many as ten to twelve global and domestic investment banks made proposals for the IPO mandate.
“They have a solid OTC business, this individual noted, and they’ve seen the steps taken by IPO-bound pharma counterparts like Bain Capital-backed Emcure Pharma and Macleod Pharma.”
Other brands in the Mankind Pharma portfolio include Unwanted-21 (oral contraception), AcneStar, Gas-O-Fast, and KabzEnd (Ayurvedic medication for constipation).
When ChrysCapital re-entered Mankind Pharma in 2018, a fifth source familiar with the company said there would have been discussions about possible exit alternatives.
“The company has been attempting to expand their OTC goods market in order to improve margins, and this transition has been hastened since ChrysCapital joined the team. This guy went on to say, They’ve established a lot of brands throughout the years and made them stronger.”
The Delhi-based Mankind Pharma was founded by Ramesh Juneja and the firm became a fully integrated pharmaceutical company in 1995. It is present in the categories of prescription medicines, OTC products and veterinary medicine.
According to its website, it has an employee base of 14,000 and is present in 34 overseas destinations including the US, Sri Lanka, Cambodia, Kenya, Cameroon, Myanmar, and the Philippines.
Mankind Pharma had earlier joined hands with BDR Pharma to launch the anti-COVID-19 pill Molulife in India. For FY21, the firm clocked revenues of around Rs 6,385 crore, EBITDA of Rs 1,657 crore and PAT of Rs 1,293 crore. The firm has 21 manufacturing units in various locations such as Paonta Sahib, Himachal Pradesh, Sikkim, Vizag and Rajasthan, its website says.
A month back, the firm had acquired the formulations brands of listed player Panacea Biotec in India and Nepal for Rs 1,872 crore to explore new therapeutic areas
In February, Mumbai-based Macleods Pharmaceuticals filed papers with SEBI for its IPO.
In August 2021, Bain Capital-backed Emcure Pharma had filed papers with the regulator for a proposed Rs 4,500–Rs 5,000-crore IPO.
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