Maker of popular condom brand Manforce Condoms - Mankind Pharma - has filed draft red herring prospectus (DRHP) with market regulator Securities Exchange Bureau of India (Sebi) for share sale via initial public offering (IPO). The condom maker plans to raise Rs 7,500 crore from the IPO which could be the biggest IPO in country's pharmaceutical sector.
The company claims 36 per cent unit-wise market share in India's condoms markets.
According to reports, IPO will comprise an offer for sale (OFS) of 4 crore equity shares by the company's promoters and existing shareholders. The promoters of the company are Ramesh Juneja, Rajeev Juneja, Sheetal Arora, Ramesh Juneja Family Trust, Rajeev Juneja Family Trust and Prem Sheetal Family Trust.
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The entire proceeds from the offer will be paid to shareholder in proportion of the equity shares offered by the selling shareholders in the offer for sale and the company will not receive any proceeds from the offer, as per the DRHP.
Mankind Pharma is among a leading pharmaceutical company in India. Besides branded generic drugs, the company’s prominent brands include Prega-News pregnancy testing kits, Manforce condoms, Gas-O-Fast ayurvedic antacids and acne-treating medicine AcneStar.
Mankind Pharma operates 23 manufacturing facilities across India, including in Himachal Pradesh, Sikkim, Rajasthan, Andhra Pradesh and Uttarakhand.
In 2015, Capital International had bought an 11 per cent stake in Mankind from ChrysCapital for $200 million. InApril 2018, ChrysCapital bought a 10 per cent stake again for about $350 million.
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This will be one of the largest public issues by a domestic drug manufacturer after the Rs 6,480-crore IPO of Gland Pharma in 2020.
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