Mankind Pharma IPO Review

Mankind Pharma’s IPO is entirely an offer for sale (OFS) of 40,058,844 equity shares by promoters and other existing shareholders to raise around Rs. 4,326 cr. The offer for sales is by the promoters Ramesh Juneja, Rajeev Juneja, Sheetal Arora and other investors namely Cairnhill CIPEF Limited, Cairnhill CGPE Limited, Beige Limited and Link Investment Trust. The issue is priced between ₹1026 to ₹1080 per share.

Mankind Pharma develops, manufactures, and markets a wide range of pharmaceutical formulations across various acute and chronic therapeutic areas. It has established several differentiated brands in consumer healthcare products such as condoms, pregnancy detection, emergency contraceptives, antacid powders, vitamin and mineral supplements, and anti-acne preparations. 

Issue Opens             25th April, 2023
Issue Closes          27th April, 2023
Issue  Size           Offer for sale of 40,058,844 Equity shares
Issue Size  (shares)            4,00,58,844
Issue Size     (Total Cr.)          ₹ 4,110 – 4,326 Cr
Face Value              ₹ 1
Price Band              ₹ 1,026 – 1,080
Bid Lot              13 shares 
QIB              50% of the offer 
NIB              15% of the offer 
Retail              35% of the offer 
BRLMs              Axis Capital, Kotak Mahindra Capital, IIFL Securities, Jefferies India, J.P.Morgan India
Registrar              KFin Technologies Ltd
Anchor Investors

Ahead of Mankind Pharma IPO, it has allotted 1,20,17,652 shares to a total of 77 anchor investors which resulted in an overall allocation of Rs.1,297.91 crore. This translates to 30% of the total issue size of Rs. 4,326.36 crore. FPIs who participated in the anchor portion include names like Canada Pensions, Government of Singapore, Monetary Authority of Singapore, Goldman Sachs, Fidelity, Blackrock, Norwegian Pensions, ADIA, Nomura Advisory, Morgan Stanley, Wellington Fund, Neuberger Berman, and Amundi Funds. The domestic fund houses include HDFC Mutual Fund, SBI Mutual Fund, and ICICI Pru MF, Kotak Mutual Fund, Invesco Mutual Fund, Canara Robeco MF etc. Some of the investors are depicted below:

Among the 77 anchor investors, 44 domestic mutual fund houses have participated in the anchor round through various schemes. The mutual fund allocation represents 39.3% of the overall anchor allocation.

About Mankind Pharma

  • Company was incorporated on July 3, 1991 and today Mankind Pharma Ltd is a leading India-focused formulation player deriving ~98% of its total sales from branded formulations.
  • It is India’s 4th largest pharmaceutical company by domestic sales.
  • Mankind Pharma Limited develops, manufactures, and markets pharmaceutical formulations across various acute and chronic therapeutic areas and several consumer healthcare products.
  • In its domestic pharmaceuticals business, it is present across acute and chronic therapeutic areas in India, including anti-infectives, cardiovascular, gastrointestinal, anti-diabetic, neuro/CNS, vitamins/minerals/nutrients and respiratory, among others.
  • In its consumer healthcare business, it has established several brands in the condoms, pregnancy detection, emergency contraceptives, antacid powders, vitamin and mineral supplements and anti-acne preparations categories.
  • Mankind Pharma has a focus on “quality, affordability and accessibility.
  • It has No. 1 Rank in Prescriptions
  • it clocked 77 Billion plus as FY 22 Revenue.
  • As of Dec 2022, Mankind Pharma employed 4,121 manufacturing workers spread across 25 manufacturing locations an 4 R&D laboratories in India.
  • It has a field team of 3,561 field managers and 11,691 medical representatives across India.
  • Company’s has an established distribution network with reliance on stockists. During the 9 months ended December, 2022, its products were sold by over 12,000 stockists.

Mankind Pharma IPO: Financials

Particulars / Rs. In Cr.9mFY239mFY222022(12)2021(12)2020(12)
Revenue from Operations6,696.776,055.797,781.566,214.435,865.23
Revenue Growth (%)10.58%25.22%5.95%
EBITDA Margin (%)22.30%28.30%25.75%26.71%24.69%
Profit before Tax1,293.951,711.551,974.601,691.611,437.74
Net Profit for the period1,015.981,260.241,452.961,293.031,056.15
Net Profit Margin (%)15.17%20.81%18.67%20.81%18.01%
Share Capital40.0640.0640.0640.0640.06
Net Worth7,145.895,965.466,155.234,722.003,485.31
EPS – Basic & Diluted (R)24.8731.04a35.7831.5925.72
RONW (%) as stated13.94%20.84%23.29%26.80%29.56%
Net Asset Value (R)178.38148.92153.65117.8887
ROCE as stated16.58%25.08%25.50%30.41%35.86%
ROE as stated14.89%22.94%25.99%30.30%31.75%
Post Issue share Cap40.06
FV in Rs. 1
IPO price1080
EPS FY2236.27
PE Fy2229.78
EPS Fy233 (ann)33.82
PE Fy23 (ann)31.94
Market cap in Lacs43265
Market Cap/sales5.56

Mankind Pharma IPO: Salient Points

  • Sales from class II-IV cities and rural areas contributed 47 percent to Mankind Pharma’s domestic sales in FY22.
  • Mankind’s consumer healthcare segment makes for 9-10 percent of its topline.
  • Mankind Pharma’s Gas-O-Fast is an Ayurvedic oral antacid powder, used to relieve symptoms of acidity, heartburn, and indigestion. In FY22, this product clocked sales of Rs 112 crore, which contributed 1.4 percent to the topline. The company also has Health OK, which is a multivitamin tablet and AcneStar, which is a skincare cream.
  • The company has a dedicated R&D centre with 4 units located in IMT Manesar, Gurugram, Haryana and Thane, Maharashtra.
  • 1 unit of this R&D centre is recognized by the DSIR, and 1 unit is in compliance with WHO GMP and has also been inspected by USFDA.
  • Mankind Pharma also has 2 more R&D centres which are operated through their non-wholly owned Subsidiaries.
  • Tts domestic sales in the North India, South India, East India and West India regions amounted to about Rs 2967.3 crore, Rs 1917.8 crore, Rs 1599.1 crore and Rs 1906.1 crore, respectively, contributing to approximately 35%, 23%, 19% and 23%, respectively of total domestic sales for during moving annual total (MAT)  December 2022.
  • Post the IPO PE investor ChrysCapital stake will go down from 21% to 13%.


  • About 13-14% of its domestic portfolio is under price control.
  • It entered into certain transactions with related parties, including Group Companies, Promoters, and Promoter Group.
  • Negligible presence in export markets.
  • Pharmaceutical and consumer healthcare industries are highly competitive


We have ranked the peers listed by company in descending order of market sales.

CompanyCMPFVRevenues rs CrEBIDTA% 9mPERoNWMcapMcap/sales
Mankind 108017,78222.3031.940.23432655.56
Sun Pharmac973138,65422.88%296.822333476.04
Cipla 910221,76322.65%27.512.08734233.37
Zydus Life519115,26520.70%25.226.4524733.44
Torrent Pharma164258,50829.67%4513.06555816.53
Alkem Lab3421210,63414.44%39.819.05408803.84
JB Chemicals206722,42422.29%39.318.06160106.60
Eris Life61011,34738.74%21.121.2882966.16
Ipca Lab74125,83015.76%35.816.1188253.23
Abbott 22302104,91923.19%5128.32474349.64
P&G  Health13858101,11432.87%88.631.234493740.32
Zydus Wellness1520102,00912.30%32.16.3815200.76

Mankind Pharma IPO: Assessment

  • Key growth drivers for pharma market globally include
    • Increase in ageing population
    • Growing prevalence of chronic diseases
    • Strong growth in global generic market
    • Expansion of health insurance coverage
  • The company’s focus on developing and marketing consumer healthcare products and this has helped it create a strong brand presence in Indian market. Mankind Pharma is focused largely on the domestic market, and this contributed 97.6 percent to its revenue in FY22.
  • The company has created 36 brands in pharmaceutical business that have each achieved over Rs 50 crore in domestic sales, according to MAT December 2022.
  • Mankind Pharma enjoys 4.4% market share in Rs. 1.9 lakh cr. Indian Pharmaceutical Market while on volume basis, this is 5.7% volume market share as its drugs are priced lower or affordable.
  • Mankind Pharma has grown 1.3x the growth rate of pharma industry and in chronic segment which is its focus area it has grown at 1.4x.
  • Mankind Pharma has demonstrated track record of creating brands with domestic sales of over Rs 100 crore. 21 of its brands had annual domestic sales of more than Rs 100 crore.
BrandDomestic Sales MAT Dec 22 Rs. MCAGR  FY20- MAT Dec 22Market Share MAT Dec 22Ranking MAT Dec 22
Manforce (Rx)3,86218%48.10%1
Nurokind plus-RF1,1567%14.20%2
Telmikind-AM1,04927%I 1.6%2
  • Mankind’s ranking, based on domestic sales, has improved from no. 8 to no. 4 in tlast 10 years. During this period, it has increased its market share by 0.4% to 4.4% in FY23
  • Mankind pharma is the 2nd company in the world to have developed a complex synthetic hormonal API dydrogesterone in-house. It launched the product Dydroboon in 2019. Dydroboon contains Dydrogesterone, a synthetic hormonal API used to treat female infertility. The Dydroboon products had Domestic Sales of approximately Rs. 2,050 million for MAT December 2022 translating to 2nd ranking with approximately 22.3% market share.
  • A new manufacturing facility for Dydroboon export is under construction, which will aid revenue as well as margin.
  • As part of its R&D focus, 2 new chemical entities (NCE) are in pre-clinical stage while anti-diabetic molecule is in phase 1 clinical trials.
  • The company plans to strategically acquire brands and companies across key markets as well as explore opportunities with other companies to diversify their therapeutic portfolio.
    • Mankind Pharma Ltd has led an investment in UK-based clinical-stage pharmaceutical firm Actimed Therapeutics.  The infusion from Mankind helped Actimed to close its second tranche of a £10 million seed funding round that it had raised. 
    • Mankind Pharma in Nov, 2022 acquired a majority stake in Upakarma Ayurveda, engaged in developing, manufacturing and selling ayurvedic and herbal products.
    • Mankind Pharma has completed acquisition of 1 dermatology brand (Daffy) and 1 respiratory brand (Combihale) from Dr. Reddy’s Laboratories in Feb 2022.
    • In Feb 2022, Mankind Pharma acquired several pharmaceutical formulations brands from Panacea Biotec Pharma Ltd and Panacea Biotec Ltd in India and Nepal with capital expenditures Rs. 2,345.52 Cr. mainly related to this acquisition. This will enable it to explore new super specialty therapeutic areas like transplant and oncology, and drive its future growth.
  • Mankind Pharma margins in 9m Fy23 took a hit of 300 bps compared to Fy22.
  • Mankind Pharma is a cash rich company with Debt/Equity at 0.09x. Its Net Working Capital Cycle was 49 days.
  • As per Social media reports there has been good activity and demand in Mankind Pharma IPO in the grey market. The prices are reported to have softened a bit from Rs. 80-90 earlier.
  • Mankind IPOs is being made at 29x PE multiple (FY22) and 31x PE (FY23 annualized)
  • The scrip appears fully valued in short run but seems to have merits from a long term perspective.
  • I am likely to apply in Mankind Pharma IPO. Shall be doing this on Day 3 after seeing extent of response and then choose between HNI or retail category.
  • Retail in general is fearful having suffered losses in many mainboard IPOs including the last two IPOs.
  • Mankind Pharma IPO ability to garner large subscription may be limited by factors like the issue is a complete OFS and finally a large issue size in current shaky & volatile sentiments in the primary market.
  • Please do your own diligence as IPOs in past have not given much listing gains to investors and have many times ended in losses.

  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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