Pharmaceutical company Mankind Pharma, the maker of popular condom brand Manforce, has filed its draft red herring prospectus DRHP with the Indian market regulator Securities and Exchange Board of India (SEBI).
According to media reports, the size of the IPO is expected to be $700 million, making it among the largest in the pharma space. Previous IPOs in the Indian pharma sector include those of Gland Pharma, Alken Laboratories, Laurus Labs and Eris Lifesciences.
The Mankind IPO will consist of an offer of sale for 40.1 million shares held by the company’s promoters and existing shareholders, according to the draft prospectus.
From the promoter group, the offer for sale comprises up to 37,05,443 equity shares by Mankind Pharma chairman Ramesh Juneja, up to 35,05,149 equity shares by managing director Rajeev Juneja, and up to 28,04,119 equity shares by CEO Sheetal Arora.
Founded in 1995 by brothers Ramesh and Rajeev Juneja, Mankind operates in 34 overseas markets with 14,000 employees. The company claims to be India’s fourth-largest pharmaceutical company in terms of domestic sales and second-largest in terms of sales volume for the financial year 2022, it said in the DRHP.
Mankind posted consolidated revenues from operations of Rs 7781.5 crore in FY22, up from Rs 6214.4 crore in FY21. The profit for the year FY22 was Rs 1452.9 crore as against Rs 1293 crore in FY21, according to the filing. The company also owns the pregnancy test brand PregaNews and antacid Gas-O-Fast.
Other than India, its major markets are the United States, Bangladesh, Sri Lanka and Nepal.
In 2015, Capital International bought an 11% stake in Mankind from ChrysCapital for $200 million. In April 2018, ChrysCapital bought a 10% stake again for about $350 million.