Mankind Pharma jumped 2.53% to Rs 2,370.80 after the company's board approved the sale of Over the Counter (OTC) business of the company to wholly owned subsidiary company on slump sales basis.
The business transfer agreement (BTA) will be executed in due course.Revenue of OTC Business for FY23 is Rs 704 crore (8.7% of Rs 8,127 crore being revenue of the company).
The company has been evaluating its position, business strategy and exploring various options to grow the OTC Business in a more focused manner. The slump sale will enable the company to remain agile in the marketplace, build wider consumer reach and will create a stronger brand recall for the OTC Business. The company believes that rationalizing its structure will provide opportunities to enhance stakeholders' value by creating sustainable and quality OTC Business.
The slump sale will be effective on or before 1 October 2024 or such other date as may be mutually agreed between the parties.
The wholly owned subsidiary (WOS) company proposed to be incorporated with the name of Mankind Consumer Products Private or any other name as approved by Ministry of Corporate Affairs. The slump sale is proposed to be undertaken at a value which will not be less than the fair market value arrived under Rule 11 UAE of Income Tax Rules, 1962 and hence would be at arms length.
The proposed WOS will be incorporated with 100% subscription to initial paid up capital of Rs 5 crore in cash further investment of upto Rs 250 crore in one or more tranches as per business requirement.
Mankind Pharma is one of the largest pharmaceutical company in India, which focuses on the domestic market with its Pan India presence.Mankind pharma operates at the intersection of the Indian pharmaceutical formulations and consumer healthcare sectors with the aim of providing quality products at affordable prices. The company has 25 manufacturing facilities in India manufacturing a wide range of dosage forms, including tablets, capsules, syrups, vials, ampoules, blow fill seal, soft and hard gels, eye drops, creams, contraceptives and other over-the-counter products.
The companys net profit jumped 59.7% to Rs 453.76 crore on 24.7% increase in net sales to Rs 2,606.96 crore in Q3 FY24 over Q3 FY23.
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