 "Mankind Pharma dips 5% on profit booking after listing of QIP shares")
Mankind Pharma shares dipped 5 per cent to Rs 2,846.70 on the BSE in Tuesday’s intra-day trade as investors booked profit after the company's 11.9 million equity shares listed on the exchanges after being allotted to qualified institutional buyers (QIBs).
In the past four days, the stock of the pharmaceutical company has rallied 13 per cent. It had hit a record high of Rs 3,050 on Monday, December 23. At 10:43 AM, Mankind Pharma share price was trading 4.5 per cent lower at Rs 2,867.55, as compared to the 0.28 per cent rise in the BSE Sensex.
“..trading members of the Exchange are hereby informed that the 11.9 million equity shares of Rs 1 each allotted to QIBs pursuant to Qualified Institutional Placement (QIP) of Mankind Pharma are listed and admitted for trading on the exchange with effect from Tuesday, December 24, 2024,” stock exchange BSE said in a notice dated December 23, 2024.
Mankind has raised Rs 3,000 crore by allotting 11.9 million shares to the eligible QIBs at an issue price of Rs 2,520 per equity share. The company allotted shares to SBI Mutual Fund, Government Pension Fund Global, Motilal Oswal Midcap Fund, and Aditya Birla Mutual Fund, among others.
Mankind has proposed to use the net proceeds from the fundraise for the repayment/pre-payment of certain outstanding borrowings of Rs 2,900 crore by the company, apart from general corporate purposes.
Meanwhile, thus far in the calendar year 2024, Mankind Pharma stock has outperformed the market by surging 45 per cent, as compared to 9 per cent rise in the BSE Sensex during the same period. It’s up 164 per cent against its initial public offer (IPO) issue price of Rs 1,080 per share. The company had made its stock market debut on May 9, 2023.
Mankind is a leading player in the domestic pharmaceuticals sector, present across acute and chronic therapeutic areas including anti-infectives, cardiovascular, gastro-intestinal, anti-diabetic, neuro/CNS, VMN and respiratory, among others, with a strategy to increase chronic presence going ahead. In the consumer healthcare business, the company operates in the condoms, pregnancy detection, emergency contraceptives, antacid powders, vitamin and mineral supplements and anti-acne preparations categories, among others, with several category-leading brands.
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Mankind’s revenue increased at a compound annual growth rate (CAGR) of 15 per cent over the last five fiscals, beating growth of the broader IPM (Indian pharmaceutical market). The company has consistently been outperforming the IPM in volume growth. CRISIL Ratings expects Mankind to achieve a low to mid double-digit revenue growth rate over the medium-term, supported by leading position in key therapies and continued new launches, as well as an increase in revenues from the acquisition of Bharat Serums and Vaccines Limited (BSV).
Mankind had, on October 23, 2024, announced the completion of a 100 per cent stake buy of BSV for a consideration of Rs 13,768 crore as per the terms and conditions of the share purchase agreement dated July 25, 2024 (including amendments thereto). Post completion of the deal, BSV has become a wholly owned subsidiary of Mankind.
According to CRISIL Ratings, the business risk profile of Mankind will remain stable over the medium-term supported by its diversified presence across therapies and established position in the domestic market through strong brands. The company is also expected to sustain operating profitability in the range of 25-26 per cent on a steady state basis. Healthy cash accrual and prudent capital spending will help sustain a strong financial risk profile for the company over the medium-term. Any further sizeable acquisition is also expected to be prudently funded, obviating pressure on the balance sheet, the rating agency said in rationale.