PE firm ChrysCapital-backed Mankind Pharma, the maker of top-selling condom brand Manforce Condoms, has filed its DRHP ( draft red herring prospectus ) with SEBI. The pharma company plans to raise more than $700 mn via an IPO. This will be the biggest ever IPO attempted by a player in this segment, Moneycontrol.com reported quoting sources.
Currently, the record in the sector is held by Gland Pharma which launched an $869 million IPO in November 2020.
A person on conditions of anonymity told moneycontrol.com that “Mankind Pharma has done the e-filing of its draft papers. It is cash rich and has been trying to expand its OTC products vertical for better margins, so there is a strong consumer angle. The IPO will consist of solely an OFS or offer for sale component of 10 per cent ,” said one of the persons above.
JP Morgan, Jefferies, IIFL Capital, Axis Capital and Kotak Mahindra Capital are the investment banks working on the IPO, sources added. Shardul Amarchand Mangaldas, Cyril Amarchand Mangaldas and Sidley are the law firms on the deal
The ChrysCapital-backed consortium of GIC of Singapore and CPP Investments, owns 10 per cent of Mankind, while Capital International owns another 11 per cent stake.
Mankind’s top over-the-counter (OTC) brands include pregnancy testing kit Prega News, emergency contraception Unwanted-21, AcneStar anti-bacterial gel, Ringout anti-fungal powder, Gas-O-Fast, Kaloree 1 artificial sweetener, Heal-O-Kind anti-bacterial ointment, Addiction Deodorant, and KabzEnd.
This will be one of the largest IPOs by a domestic drug manufacturer after the Rs 6,480-crore IPO of Gland Pharma in 2020. Macleods Pharmaceuticals has also filed to raise Rs 5,000 crore through an initial public offering (IPO), while Pune-based Emcure Pharma is launching a Rs 4,500-crore IPO.
Started in 1995 by brothers Ramesh and Rajeev Juneja, Mankind operates in 34 overseas markets with 14,000 employees. It focuses on the cardiovascular, antibiotics, gastrointestinal, anti-allergic, anti-fungal, orthopaedic and gynaecological segments.
Its top prescription drugs include hypertension tablets Amlokind and Telmikind, antibiotic tablets Cefakind and Moxikind-CV, vitamin tablet Nurokind, anti-ulcer tablet Rabekind and anti-bacterial tablet Zenflox.
Mankind recently expanded its domestic footprint by buying out the formulation brands of Panacea Biotec for India and Nepal for Rs 1,872 crore, helping it to enter new therapeutic areas–oncology and transplants.
Capital International bought into Mankind in 2015 by acquiring the 11 per cent stake held by ChrysCapital for $200 million. ChrysCapital made a comeback in 2018, heading the consortium that included Singapore’s Government Investment Corporation and Canada’s CPP Investments, by purchasing a 10 per cent stake for about $350 million, valuing the company at $3.5 billion.
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