image showing pharma company coming up with an IPO
The stock market in India has been experiencing a turbulent start to 2023, with only a few companies coming up with their IPOs. However, for investors who are looking for new investment opportunities, Mankind Pharma Ltd IPO seems like a glimmer of hope. As one of the leading pharmaceutical companies in India, Mankind Pharma has been delivering quality products and services for over 25 years. With a strong focus on research and development, the company has been expanding its product portfolio and footprint globally. This blog will provide an in-depth analysis of Mankind Pharma Ltd IPO and its potential for investors looking to invest in the pharmaceutical sector.
Mankind Pharma Limited IPO will open for subscription on 25th April 2023 and will close on 27th April 2023.
Here are all the essential details of Mankind Pharma Limited IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of the Mankind Pharma Limited IPO are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 25th April 2023 |
| IPO Closing Date | 27th April 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Re. 1 per share |
| IPO Price Band | Rs. 1026 – Rs. 1080 per share |
| IPO Size | Rs. 4,326 crores (40,058,844 shares) |
| Offer For Sale | Rs. 4,326 crores (40,058,844 shares) |
| Fresh Issue | Nil |
The important dates for the Mankind Pharma Limited IPO are highlighted below:
| Event | Date |
| Opening date | 25th April 2023 |
| Closing Date | 27th April 2023 |
| Allotment date | 3rd May 2023 |
| Refund Date | 4th May 2023 |
| Share Credit Date | 5th May 2023 |
| Listing Date | 8th May 2023 |
Investors can subscribe to the shares of Mankind Pharma Limited IPO in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots (for retail investors) | Minimum – 1 lotMaximum – 14 lots |
| Investment amount (for retail investors) | Minimum – Rs. 14,040Maximum – Rs. 1,96,560 |
| Shares (HNI) | Minimum – 15Maximum – 71 |
The categories of eligible investors and their share in the IPO are tabled below:
| Category of Investor | Reservation Percentage |
| QIB (Qualified Institutional Buyers) | 50% |
| NII (Non-Institutional Bidders) | 15% |
| RII (Retail Individual Investors) | 35% |
This IPO is an entirely Offer for Sale issue, which means that existing promoters of Mankind Pharma Ltd plan to offload some of their stake in the company. The company will not receive any proceeds from the offer and all the offer proceeds will be received by the selling shareholders.
Established in 1991, Mankind Pharma Limited is a leading pharmaceutical company that specializes in developing, manufacturing, and distributing pharmaceutical formulations across a range of acute and chronic therapeutic areas, as well as consumer healthcare products.
The company has a significant presence in the Indian market, catering to various therapeutic fields, such as anti-infectives, cardiovascular, gastrointestinal, anti-diabetic, neuro/CNS, vitamins/minerals/nutrients, and respiratory. It boasts an impressive portfolio of over 36 brands, which includes popular names like Manforce (Rx), Moxikind-CV, Amlokind-AT, Unwanted-Kit, Candiforce, and Glimestar-M.
Mankind Pharma has a vast distribution network of medical representatives in the Indian pharmaceutical market, which is one of the largest in the industry. More than 80% of doctors in India prescribe their formulations, making it one of the most trusted and reliable names in the field. In fact, the company was ranked 4th in terms of domestic sales during the Financial Year 2022, a testament to its success and growth.
Mankind Pharma Limited financials are given in the table below:
| Year | Total Assets (Rs. In crores) | Operating Revenue (Rs. In crores) | Profit after tax (Rs. In crores) | Basic EPS(Rs.) | Diluted EPS(Rs.) | RONW(%) |
| Mar-2022 | 9,148 | 7,781 | 1,453 | 35.78 | 35.78 | 23.29 |
| Mar-2021 | 6,373 | 6,214 | 1,293 | 31.59 | 31.59 | 26.80 |
| Mar-2020 | 5,073 | 5,865 | 1,056 | 25.72 | 25.72 | 29.56 |
(Source: RHP)
Some of the key strengths of Mankind Pharma Limited that investors can take note of are:
| Category | Details |
| Business model | Mankind Pharma Limited has established itself as a leading domestic pharmaceutical company, with significant potential for further growth.The company has a strong presence in the consumer healthcare sector, which is continuously growing and has high brand recall among customers.The company has successfully leveraged its corporate brand to build and scale its brands, resulting in a diverse portfolio with strong rankings across key therapeutic areas.Mankind Pharma has a wide market and distribution coverage, with a focus on providing affordable and accessible healthcare solutions. |
| Faster growth | Mankind Pharma has been able to outpace the Indian Pharmaceutical Market (IPM) with its volume-led growth strategy. |
Here are some of the risks that investors of Mankind Pharma Limited IPO should know:
| Category | Details |
| Business viability and profitability | The company may face challenges in obtaining and maintaining intellectual property rights for its brands, which could lead to increased competition and decreased profitability. Additionally, protecting proprietary information may be difficult.Dependence on subsidiaries exposes the company to significant risks. Any financial or operational issues within these subsidiaries could adversely affect the company’s overall performance.Political, economic, or other factors beyond the company’s control may have an adverse effect on its business and results of operations. Uncertainties surrounding regulatory changes, government policies, and global events could lead to increased volatility and risk.Delays or defaults in customer payments and receivables could adversely impact profits and affect cash flows. This risk is particularly relevant in a highly competitive market with multiple players vying for business. |
| Competition | Due to the fragmented nature of the industry segments in which the company operates, it faces competition from other large and small players. Business interruption risks may arise from internal and external factors, which could impact operations. |
As of April 20th, 2023, the grey market premium for the shares of Mankind Pharma Limited is approximately between Rs. 74-82 as per market observers.
Mankind Pharma has over 36 brands in its portfolio and one of the largest distribution networks of medical representatives in the Indian pharmaceutical market, with over 80% of doctors prescribing their formulations. This IPO presents an opportunity for investors looking to gain exposure to the Indian healthcare industry.
Investors can invest in this IPO through the Fisdom app.
Mankind Pharma Ltd owns some of the popular brands like ‘Manforce’ condoms, pregnancy test kit Prega News, emergency contraceptive brand Unwanted-72 and antacid powders (Gas-O-Fast) among others.
Some of Mankind Pharma’s competitors include Cipla Ltd, Sun Pharma, Zydus Lifesciences, Alkem Laboratories, and JB Chemicals & Pharmaceuticals.
The GMP of Mankind Pharma Limited as on 20th April 2023 ranged between approximately Rs. 74-82 per share.
Yes, to apply for any IPO, you need to have a Demat account. To open a Demat account today, you can download the Fisdom app on your smartphone.
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