ChrysCapital-backed healthcare player Mankind Pharma has filed draft papers for its initial public offering with markets regulator Securities and Exchanges Board of India (Sebi), comprising of an OFS (offer for sale) of 4 crore equity shares.
The Manforce Condoms-maker’s IPO size is likely to be $750 million-1 billion, according to people aware of the development.
According to the Draft Red Herring Prospectus (DRHP), Mankind founder Ramesh Juneja will sell up to 37.05 lakh shares as part of OFS, followed by other promoters including Rajeev Juneja and Sheetal Arora are planning to sell about 35.05 lakh and 28.04 lakh shares respectively.
Apart from the promoters, investor Capital International (via affiliates Cairnhill CIPEF and Cairnhill CGPE Ltd), who own 11% stake in Mankind, will offload partial stake by selling 2 crore shares.
Beige Limited and Link Investment Trust, affiliates of Chrys Capital will also divest a part of their stake by offering to sell around 1 crore equity shares.
Private equity player Capital International bought 11% stake in the domestic pharma player from ChrysCapital for an amount of $200 million. In April 2018, ChrysCapital again bought 10% stake in Mankind for around $350 million.
Currently, the promoter and promoter group own about 79% stake in the Delhi-based pharmaceutical firm.
"The company will not receive any proceeds from the offer. The offer is an offer for sale of 40,058,844 equity shares by the selling shareholders. The entire proceeds from the offer will be paid to selling shareholders in proportion of the equity shares offered by the selling shareholders in the OFS," the DRHP further mentioned.
Kotak Mahindra, Axis Capital, IIFL Securities, Jefferies and JP Morgan book running lead managers for Mankind’s IPO.
Founded in 1991, Mankind offers several consumer healthcare products including emergency contraceptives Unwanted 72, Manforce condoms, Prega-News, Gas-o-Fast ayurvedic antacids and skin ointment Acnestar, with a focus on the Indian market.
The company had reported an operational revenue of Rs 7,781.56 crore in the financial year ending March 31, 2022, up 25% over the previous year. It reported a profit of Rs 1,452.96 crore in FY21.
The company, earlier this year, announced its foray into the agrtitech space by launching Mankind Agritech Pvt. Ltd with an investment of Rs 200 crore over the next 2-3 years.