Mankind Files For IPO; Promoters, Early Investors To Participate

Healthcare provider Mankind Pharma, which is funded by ChrysCapital, has submitted draught papers for its IPO with market watchdog Securities and Exchanges Board of India (Sebi), which would include an OFS (offer for sale) of 4 crore equity shares.

People with knowledge of the situation estimate that the Manforce Condoms maker’s IPO will raise between $750 million and $1 billion.

Ramesh Juneja, the creator of Mankind, plans to sell up to 37.05 lakh shares as part of the OFS, followed by promoters Rajeev Juneja and Sheetal Arora, who intend to sell roughly 35.05 lakh and 28.04 lakh shares, respectively, in the Draft Red Herring Prospectus (DRHP).

In addition to the promoters, shareholder Capital International, who owns 11% of Mankind through affiliates Cairnhill CIPEF and Cairnhill CGPE Ltd, would divest a portion of their holdings by selling 2 crore shares.

Affiliates of Chrys Capital, Beige Limited and Link Investment Trust, will also sell about 1 crore equity shares in order to reduce their ownership interest.

For $200 million, the private equity firm Capital International acquired ChrysCapital’s 11% interest in the local pharmaceutical company. ChrysCapital again acquired a 10% interest in Mankind in April 2018 for about $350 million. The promoter and promoter group currently possess roughly 79% of the Delhi-based pharmaceutical company.

“The offer’s revenues won’t be given to the corporation. The selling shareholders are offering to sell 40,058,844 equity shares in this transaction. In proportion to the equity shares they offered in the OFS, the selling shareholders will get all of the offer’s profits “The DRHP made further remark.

For Mankind’s IPO, Kotak Mahindra, Axis Capital, IIFL Securities, Jefferies, and JP Morgan served as book running lead managers.

Mankind, an organisation with an emphasis on the Indian market, was founded in 1991 and provides a range of consumer healthcare goods, including Acnestar skin treatment and emergency contraception Unwanted 72, Manforce condoms, Prega-News, and Gas-o-Fast ayurvedic antacids.

In the fiscal year that ended on March 31, 2022, the firm generated operational revenue of Rs 7,781.56 crore, an increase of 25% from the prior year. In FY21, it revealed a profit of Rs 1,452.96 crore.

The business announced its entry into the agritech market earlier this year by establishing Mankind Agritech Pvt. Ltd. with an investment of Rs 200 crore over the following 2-3 years.

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An MBA in HR and Marketing from AIMS Institute (Bangalore University), He heads digital business he has a rich experience that he has garnered from his previous organisations Including leading Banks, NBFCs & Genpact India. He is a serial entrepreneur and the founder of Heavy Group of Companies.

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