The corporate has fastened a value band of Rs 1,026-1,080 for its IPO, which is totally a suggestion on the market (OFS) of 40 million fairness shares by promoters and different present shareholders.
Beneath the OFS, promoters Ramesh Juneja, Rajeev Juneja and Sheetal Arora will offload shares. Because the IPO is totally an OFS, the corporate won’t obtain any internet proceeds from the difficulty and the whole quantity will go to the promoting shareholders.
On the higher finish of the worth band, the IPO dimension is estimated at Rs 4,326 crore and the corporate is in search of a valuation of Rs 43,264 crore.
Based on market sources, the corporate’s shares are commanding a premium of Rs 68-70 within the unlisted market, whereas buyers await the motion on anchor buyers’ half.
Nonetheless, you will need to observe that gray market premiums are simply an indicator as to how the corporate’s shares are stacked up within the unlisted market and are topic to vary quickly.
Mankind Pharma is the fourth-largest Indian pharmaceutical firm by way of home gross sales and third-largest by way of gross sales quantity for transferring annual complete as of December 2022.It has a pan-India advertising presence and operates 25 manufacturing amenities throughout the nation. As of December 2022, the corporate had a crew of over 600 scientists and a devoted in-house R&D centre with 4 models situated at IMT Manesar, Gurugram and Thane.
On the larger finish of the worth band, the shares of Mankind Pharma are valued at 30x FY22 EPS. Based on Sharekhan, pharma corporations on a median quote a P/E of 25x/22x FY24e/FY25e.
The brokerage expects the corporate’s sturdy set of manufacturers, targeted method to its persistent portfolio by way of current acquisitions, launches and differentiated pipeline merchandise to be key positives.
The corporate has posted a internet revenue of Rs 996 crore for the 9 months ended December 2022 interval, which is down from Rs 1,243 crore in the identical interval of previous yr. The corporate’s income from operations for a similar interval rose practically 11% to Rs 6,697 crore.
(Disclaimer: Suggestions, ideas, views and opinions given by the consultants are their very own. These don’t symbolize the views of Financial Occasions)