Despite an uncertain macroeconomic environment, condom manufacturer Mankind Pharma is planning to open its IPO on April 25 and close it on April 27.
There is an IPO price range of $1,026 – $1,080 per share. The company’s shares are currently commanding a huge grey market premium, or GMP, of $100 per share. Before they are listed on the stock exchange, IPO shares are traded on an unofficial market at a premium called GMP.
Promoters and existing shareholders of the company, which sells condoms and pregnancy detection kits, will offer over 4 crore equity shares in the IPO. As a result, the company will not receive any proceeds from the sale. Co-founders Ramesh Juneja and Rajeev Juneja, chief executive officer Sheetal Arora, Cairnhill CIPEF, Cairnhill CGPE, Beige Limited, and Link Investment Trust will all sell shares.
Shares of the company will be allocated to investors on May 3 and listed on May 8.
It manufactures pharmaceutical formulations for acute and chronic therapeutic areas, as well as consumer healthcare products.
Among its products are condoms, pregnancy detection kits, emergency contraceptives, antacid powders, vitamins and minerals, and anti-acne preparations.
A total of 25 manufacturing facilities are located in Himachal Pradesh, Sikkim, Rajasthan, Andhra Pradesh, Maharashtra, and Uttarakhand.
After India, its major markets are the US, Bangladesh, Sri Lanka, and Nepal, and any developments in the pharmaceutical industry in these regions could impact its business.
Further, Mankind Pharma faces government price controls that may adversely affect its business. In addition to normal price competition, we may be subject to price controls imposed by governments or healthcare providers in India, or in other countries to which we export our products, which may limit the revenue we earn from certain products,” the company said in a red herring prospectus.
Additionally, the company is seeking to acquire brands and diversify its therapeutic offerings.
In addition to deepening our presence in existing markets, we plan to enter new ones. As part of its DRHP, the company intends to diversify its therapeutic portfolio by acquiring brands and companies in key markets, as well as exploring in-licensing and co-development opportunities with other companies.
A total of 20 countries sell its products, including the US, Latin America, Southeast Asia, Africa, the Middle East, and the Commonwealth of Independent States (CIS).
Over the last three years, Mankind Pharma’s profitability has grown by over 37%
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