According to Moneycontrol, private equity firm ChrysCapital-backed Mankind Pharma, maker of best-selling condom brand Manforce Condoms, has filed its DRHP with market regulator SEBI with plans to raise upwards of $700 million through IPO, one of the biggest attempts by a player in the segment.

The current record in this space is held by Gland Pharma, which launched an IPO of $869 million in November 2020.
“Mankind Pharma has done e-filing of its draft documents. It is cash-rich and is looking to expand its OTC products for better margins, hence has a strong consumer angle. The IPO will consist of only an OFS or an offer for sale component of 10%,” said one of the above persons.

Two other persons confirmed filing documents with the market regulator, one of whom said that since Mankind Pharma has a primarily domestic business, it will resonate far more with investors than pharma firms with more foreign exposure.

Mankind Pharma is targeting a valuation of between $7 billion and $8 billion, which could be raised later depending on market conditions while selling shareholders eyeing a partial exit will include major investors such as ChrysCapital and Capital International, a fourth person said. The promoter family could also dilute some stakes, the person added.

Jefferies, IIFL Capital, Axis Capital and Kotak Mahindra Capital were the investment banks involved in the IPO. Shardul Amarchand Mangaldas, Cyril Amarchand Mangaldas and Sidley are the law firms on the deal.

In 2015, Capital International bought an 11% stake in Mankind Pharma from ChrysCapital for $200 million. In April 2018, a consortium led by ChrysCapital, including GIC and CPPPIB, staged a strong comeback, acquiring another 10% stake for around $350 million.

Earlier this year, Mankind Pharma acquired the Indian and Nepali formulation brands of listed company Panacea Biotec for Rs 1,872 crore to explore new therapeutic areas.

Mankind Pharma’s DRHP filing comes amid uncertainty among pharmaceutical peers about the roadmap for two other large IPOs. Macleods Pharma delayed plans to go public due to a mismatch with investors’ valuations.

In August 2021, Bain Capital-backed Emcure Pharma also filed documents for a proposed IPO of Rs 4,500-5,000 crore with regulators and received approval from Sebi, but the issue has yet to begin.

Delhi-based Mankind Pharma was founded by Ramesh Juneja and became a fully integrated pharmaceutical company in 1995. It exists in categories such as prescription drugs, OTC products, and veterinary drugs.

Kaloree 1, Prega News Unwanted-21 (oral contraceptive), AcneStar, Gas-O-Fast and KabzEnd (Ayurvedic product for constipation) are some other brands in Mankind Pharma’s portfolio.

According to its website, it has 14,000 employees and operates in 34 overseas destinations, including the United States, Sri Lanka, Cambodia, Kenya, Cameroon, Myanmar and the Philippines.

Mankind Pharma had joined forces with BDR Pharma to launch the anti-COVID-19 tablet Molulife in India. In FY21, the company recorded revenue of around Rs 6,385 crore, EBITDA of Rs 1,657 crore and PAT of Rs 1,293 crore. The company’s website says it has 21 manufacturing units in various locations, including Paonta Sahib, Himachal Pradesh, Sikkim, Vizag and Rajasthan.