Delhi-based Mankind Pharma’s price band for its initial public offering has been fixed between ₹1,026 and ₹1,080 a share. The IPO is set to open on April 25 and close on April 27.  

The IPO is entirely an offer for sale by promoters and existing shareholders of the company, who will offload about 4 crore shares with a face value of ₹1 each.  

Giving details on the shares to be offloaded by the promoters, the company said, it included a sale of up to 37.05 lakh  shares by Ramesh Juneja; 35.05 lakh  shares by Rajeev Juneja; and 28.04 lakh shares by Sheetal Arora.

The offer also includes selling by investor shareholders: 1.74 crore shares by Cairnhill CIPEF Limited; 26.23 lakh  shares by Cairnhill CGPE Limited; 99.64 lakh shares by Beige Limited; and 50,000 shares by Link Investment Trust. 

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The size of the IPO is ₹4,300 crore at its upper price range, according to reports, which will make it among the largest pharma IPOs in recent times (after the ₹6,000-plus crore IPO from Gland Pharma in November 2020). Since the IPO is completely an OFS, the company will not receive any net proceeds from the issue and the entire amount raised the issue will go to the selling shareholders.

With revenues close to ₹8,000 crore, Mankind Pharma has a presence in the pharmaceutical and consumer healthcare segments.   

The offer is being made through the Book Building Process wherein not more than 50 per cent would be available for allocation on a proportionate basis to QIBs  (qualified institutional bidders), provided that the company and the selling shareholders, in consultation with the BRLMs (book running lead managers), may allocate up to 60 per cent of the QIB portion to anchor investors, a note from the company said. 

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The Anchor investor bidding date is on April 24. Announcing the price band, bids can be made for a minimum of 13 equity shares and in multiples of 13 equity shares thereafter.  

Further, it said, not less than 15 per cent of the Offer would be available for allocation to NIIs (Non-Institutional Category). And not less than 35 percent of the Offer would be available for allocation to RIIs (Retail Category). 

Kotak Mahindra Capital Company, Axis Capital, IIFL Securities, Jefferies India Private, and JP Morgan India are the Book Running lead managers to the Offer. 

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