PE company ChrysCapital-backed Mankind Pharma, maker of best-selling condom brand Manforce Condoms, has submitted its DRHP (Red Herring Draft Prospectus) to SEBI. The pharmaceutical company plans to raise more than $700 million through an IPO. This will be the largest IPO ever attempted by a player in this segment, Moneycontrol.com reported citing sources.
Currently, the industry record is held by Gland Pharma, which launched an IPO of $869 million in November 2020.
A person under conditions of anonymity told moneycontrol.com that “Mankind Pharma has done the e-archiving of its draft documents. It is cash rich and has tried to vertically expand its OTC products for better margins, so there is a strong consumer angle. The IPO will consist solely of a 10 percent OFS or offering component,” said one of the above individuals.
JP Morgan, Jefferies, IIFL Capital, Axis Capital and Kotak Mahindra Capital are the investment banks working on the IPO, sources said. Shardul Amarchand Mangaldas, Cyril Amarchand Mangaldas and Sidley are the law firms involved in the deal
The ChrysCapital-backed consortium of Singapore-based GIC and CPP Investments owns 10 percent of Mankind, while Capital International owns an additional 11 percent.
Mankind’s best over-the-counter brands include Prega News Pregnancy Test Kit, Unwanted-21 Emergency Contraception, AcneStar Antibacterial Gel, Ringout Antifungal Powder, Gas-O-Fast, Kaloree 1 Artificial Sweetener, Heal-O – Kind of Antibacterial Ointment, Addiction Deodorant, and KabzEnd .
This will be one of the largest IPOs of a domestic drug maker after Gland Pharma’s Rs 6,480 crore IPO in 2020. Macleods Pharmaceuticals has also applied to raise Rs 5,000 crore through an initial public offering (IPO), while it is Pune-based Emcure Pharma launches an IPO of Rs 4,500 crore.
Started in 1995 by brothers Ramesh and Rajeev Juneja, Mankind operates in 34 overseas markets with 14,000 employees. It focuses on the cardiovascular, antibiotic, gastrointestinal, antiallergic, antifungal, orthopedic and gynecological segments.
The main prescription drugs include hypertension tablets Amlokind and Telmikind, antibiotic tablets Cefakind and Moxikind-CV, vitamin tablet Nurokind, anti-ulcer tablet Rabekind, and antibacterial tablet Zenflox.
Humanity has recently expanded its domestic footprint by buying out Panacea Biotec’s formulation brands for India and Nepal for Rs 1,872 crore, opening it up to new therapeutic areas – oncology and transplants.
Capital International bought Mankind in 2015 by acquiring the 11 percent stake owned by ChrysCapital for $200 million. ChrysCapital made a comeback in 2018, leading the consortium that included Singapore’s Government Investment Corporation and Canada’s CPP Investments, buying a 10 percent stake for approximately $350 million, valuing the company at $3.5 billion.
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