PE firm ChrysCapital-backed Mankind Pharma intends to raise about Rs 4,500-4,700 crore through an initial public offering (IPO) slated to hit the markets by the end of this month or early next month.
“The company is looking to launch the IPO by the end of this month, depending on regulatory approvals. This would perhaps be one of the biggest IPOs of FY24, and will come at a time when fundraising from the capital markets are gaining steam. The firm is awaiting final approvals from the regulator,” a source close to the development said.
While ChrysCapital and the promoters of the company will dilute 2.5% stake each, Capital International will offload a 5% stake through the initial stake sale. At present, ChrysCapital holds a 10% stake, Capital International 11%, and the remaining 79% stake in the company is held by the promoters.
The PE investors, who are holding stakes through affiliate firms are partly exiting, as their investment tenure in the company is expiring, they added. Capital International had acquired an 11% stake in the company from ChrysCapital for $200 million in 2015, and later in April 2018, a consortium led by ChrysCapital acquired a 10% stake for about $350 million. ChrysCapital had made its first investment in 2007.When contacted, a company spokesperson declined to comment, stating it has nothing more to offer than what was mentioned in the draft red herring prospectus (DRHP).
The company had filed its DRHP for the IPO with markets regulator Sebi on September 15, 2022. According to the DRHP, Mankind Pharma would offload a total of 40 million shares, with the prices to be decided through a book-building process. Apart from the PE firms, the promoters of the company, including chairman Ramesh Juneja, MD Rajeev Juneja and CEO Sheetal Arora, will also offload stakes. Kotak Mahindra Capital Company, Axis Capital, IIFL Securities, Jefferies India and JP Morgan India are the managers to the issue.