Mankind Pharma IPO Review 2023 – GMP, Financials, Competitors & More

Mankind Pharma IPO Review 2023: Mankind Pharma Limited Ltd is coming up with its Initial Public Offering. The IPO will open for subscription on April 25, 2023, and close on April 27, 2023. In this article, we will look at the Mankind Pharma Limited IPO Review 2023 and analyze its strengths and weaknesses. Keep reading to find out! 

Mankind Pharma IPO Review 2023– About The Company

Established in 1991, Mankind Pharma Limited is a pharmaceutical company engaged in the business of developing, manufacturing, and marketing a diverse range of pharmaceutical formulations covering acute and chronic therapeutic areas along with several consumer healthcare products.

The company focuses most of its operations in the Indian market and has generated 97.60% of revenue in FY22 from the domestic market. The company has created 36 brands under its pharmaceutical business that have each achieved over ₹500.00 million in Domestic Sales in FY22. This has made the company the second-largest in sales volume and fourth-largest pharmaceutical company in Domestic Sales for the Financial Year 2022.

In FY22, the company established a pan-India marketing presence with a field force of 3,195 field managers and 11,196 medical representatives. The company has also established 23 manufacturing facilities across India and 2,181 manufacturing personnel during the previous financial year.

Mankind Pharma IPO Review 2023 – Financial Highlights

If we look at the financials of Mankind Pharma Limited we find out that their assets have grown from Rs.5,073.29 crores in March 2020 to Rs. 9,147.74 crore in March 2022.

Their revenues also follow a similar trend, it has grown from Rs. 5,975.65 crore in March 2020 to Rs.7,977.58 crore in March 2022. Their profits have grown from Rs.1,056.15 crores in March 2020 to Rs.1,452.96 crores in March 2022.

It is important to note that the company’s borrowing has also increased from Rs. 126.92 crores In March 2020 to Rs. 868.03 crores in March 22. 

The company has even increased its reverse from Rs.3,436.34 crores in March 2020 to Rs. 6,106.06 crores in March 22. This means the company has enough money with them which can help them bear any unexpected expenses or losses incurred

The balance sheet of the company 

(Source: DRHP of the company)

Profit and loss Statement of the company

(Source: DRHP of the company)

Products by the company

Following are the different products sold by the company under different Therapeutic Areas:

Anti-infectives

Cardiovascular

Gastrointestinal

Vitamins/minerals/nutrients

Respiratory

Anti-diabetic

Dermatology

Gynecology

Pain/analgesics

Neuro/CNS

Competitors of the company

(Source: DRHP of the company)

Strengths of the Company

• The company has one of the largest domestic formulation businesses in India and ranks fourth in terms of domestic sales in the Indian Pharmaceutical market.
• The company’s domestic sales have grown at a CAGR of 16% between the financial Years 2020 and 2022 which is approximately 1.5 times more than the domestic sales growth of the Indian Pharmaceutical Market.
• The company has a diversified range of products with market-leading rankings across key therapeutic areas.
• The company has been able to build and scale brands in the Indian pharmaceutical market due to its efforts to establish “Mankind” as a well-recognized brand in India. 
• The company has a huge presence in the marketing and distribution department and has one of the largest distribution networks in the Indian pharmaceutical market

Weaknesses of the Company

• The company is subject to extensive government regulations that are prone to change. Any failure to comply with these regulations or the regulatory agencies can negatively affect the business.
• In order to operate its business, the company must obtain and maintain its statutory and regulatory approvals, licenses, and registrations. 
• The company’s market recognition and trust of its customers in its products could be impacted in case of any failure to maintain and enhance its product or brand.
• Any delays, interruptions, or reduction in the supply of raw materials or finished formulations from the suppliers or an increase in raw materials cost can adversely impact the supply and pricing of the company’s products
• A significant portion of the revenue of the company is contributed by certain therapeutic areas and the non-performance of its products in those areas could adversely affect the cash flows of the company.
• The company is exposed to price controls by the government which could negatively affect its results of operations

Mankind Pharma IPO – GMP

The shares of Mankind Pharma Limited traded at a premium of 7.4% in the grey market on April 19th, 2023. The shares tarded at Rs 1160. This gives it a premium of Rs 80 per share over the cap price of Rs
1,080.

Key IPO Information

Promoters: Ramesh Juneja, Rajeev Juneja, Sheetal Arora, Ramesh Juneja Family Trust, Rajeev Juneja Family Trust, And Prem Sheetal Family Trust

Book Running Lead Manager: Kotak Mahindra Capital Company Limited, Axis Capital Limited, IIFL Securities Limited, Jefferies India Private Limited, J.P. Morgan India Private Limited

Registrar to the Offer: KFin Technologies Limited

The Objective of the Issue

The following are the Objectives of the issue by the company:

• To enhance the visibility of the company through the issue
• To provide liquidity to the company’s existing shareholders 

In Closing

In this article, we looked at the details of Mankind Pharma IPO Review 2023. Analysts remain divided on the IPO and its potential gains. This is a good opportunity for investors to look into the company and analyze its strengths and weaknesses. That’s it for this post.

Are you applying for the IPO? Let us know in the comments below.

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