Most analysts had assigned “SUBSCRIBE” rating to Mankind Pharma IPO, citing opportunities from its newer acquired products and its plan to backward integrate in its power brands. The firm’s growing presence in areas of chronic therapy, and high brand recognition as well as good track record of operational & financial performance also augur well for the company.
Ahead of the IPO, the homegrown pharma company raised ₹1,297.90 crore by allotting 1,20,17,652 equity shares at ₹1,080 per share to 77 anchor investors (including 16 domestic mutual funds through a total of 41 schemes). The anchor investors include Canada Pension Plan Investment Board, Government of Singapore, Monetary Authority of Singapore, Goldman Sachs, Fidelity, Blackrock, Abu Dhabi Investment, Nomura, Morgan Stanley, HDFC Trustee, SBI MF, ICICI Prudential, FIAM Group Trust, National Pension Service by Blackrock, Government Pension Fund, Ashoka India, Motilal Oswal, Nippon Life India Trustee, Axis MF, Kotak MF, and others.
Established in 1991, Mankind Pharma, the country’s fourth largest pharmaceutical company in terms of domestic sales for the financial year 2022, generates 98% of its revenue from India. The company, which manufactures emergency contraceptive brand Unwanted-72, Gas-O-Fast ayurvedic antacids, and acne-treating medicine AcneStar, is a net debt-free company which generated profit after tax (PAT) of ₹1,030.5 crore in 2019-20, ₹1,253.9 crore in 2020-21, and ₹1,419.2 crore in 2021-22. For the nine-month ended December 31, 2022, the company’s PAT stood at ₹986.9 crore. For the financial years 2020, 2021 and 2022, the company’s revenue from operations in India amounted to ₹5,788.8 crore, ₹6,028 crore and ₹7,594.7 crore, respectively, representing 98.70%, 97.01% and 97.60%, respectively, of its total revenue from operations. After India, its major markets are the U.S., Bangladesh, Sri Lanka and Nepal.
