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Mankind Pharma Ltd IPO Company Profile :

Mankind Pharma Ltd is India’s fourth largest pharmaceutical company in terms of Domestic Sales and second largest in terms of sales volume for the Financial Year 2022. The company is engaged in developing, manufacturing, and marketing a diverse range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products. The company is focused on the domestic market, as a result of which the revenue from operations in India contributed to 97.60% of the total revenue from operations through the pharmaceuticals and consumer healthcare business for the Financial Year 2022, which was one of the highest among its peers.


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    Mankind Pharma Ltd IPO Business Areas:

    • Domestic pharmaceuticals business: The product portfolio comprises a broad range of formulations across various acute and chronic therapeutic areas including anti-infectives, cardiovascular, gastrointestinal, anti-diabetic, neuro/CNS, vitamins/minerals/nutrients, and respiratory.

    • Consumer healthcare business: The Company has established several differentiated brands in the condoms, pregnancy detection, emergency contraceptives, antacid powders, vitamin and mineral supplements, and anti-acne preparations categories.

    Mankind Pharma Ltd IPO Key consumer healthcare brands:

    • Manforce: Under the Manforce brand, the company sells a range of condoms. In terms of Domestic Sales in the Financial Year 2022, Manforce ranked 1st in the male condom category, with a market share of approximately 30.2%

    • Prega News: Prega News is an easy-to-use home pregnancy detection kit that seeks to detect pregnancy with the use of urine samples. In terms of Domestic Sales in the Financial Year 2022, Prega News ranked 1st in the pregnancy test kit category, with a market share of approximately 80.1% as of March 31, 2022.

    • Gas-O-Fast: Gas-O-Fast is an ayurvedic, multi-flavor, oral antacid powder used to relieve symptoms of acidity, heartburn, and indigestion. In terms of Domestic Sales in the Financial Year 2022, Gas-O-Fast ranked 5th in the molecule category, with a market share of approximately 4.0%

    • Unwanted-72: Unwanted-72 is used as an emergency contraceptive tablet to prevent unwanted pregnancy in cases of unprotected sex or contraceptive failure. The tablet is to be taken within 72 hours of sexual intercourse in order for it to be effective. This contraceptive range also includes birth control pill, namely Unwanted-21 Days. In terms  of  Domestic  Sales  in  the  Financial  Year 2022,  Unwanted-72  ranked  1st in  the  emergency  contraceptive  category,  with  a  market  share  of approximately 59.2%

    • Health OK: Health OK is a multivitamin tablet that helps improve energy levels and boosts overall health and immunity. Under Health OK, the company offers multivitamin gummies for children. In terms of Domestic Sales in the Financial Year 2022, Health OK ranked 5th in the multivitamin category, with a market share of approximately 3.4%

    • AcneStar: AcneStar is an anti-inflammatory and anti-bacterial gel that contains clindamycin and nicotinamide and is used for the treatment of acne. In terms  of  Domestic  Sales  in  the  Financial  Year  2022, AcneStar  ranked 2nd in the  acne  preparations category, with a market share of approximately 13.2%

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    Mankind Pharma Ltd IPO Financial Analysis:

    Particulars FY-22(in cr.) FY-21(in cr.) FY-20(in cr.) CAGR
    Revenue 7781.55 6214.43 5865.23 9.9%
    COGS 2421.72 1780.6 1878.07  
    Gross profit 5359.83 4433.83 3987.16 10.4%
    Gross profit Margin 68.88 71.35 67.98  
    Empl. Cost 1620.59 1415.78 1335.52
    Other exp. 1749.88 1352.22 1124.24
    EBITDA 1989.36 1665.83 1527.40 9.2%
    EBITDA Margin 25.57 26.81 26.04  
    Depreciation 166.62 118.97 189.64
    Interest 58.61 20.14 21.97
    PBT 1764.13 1526.72 1315.79 10.3%
    Total tax 521.64 398.57 381.58
    Tax rate 29.57 26.11 29.00
    PAT 1242.49 1128.15 934.21 10.0%
    Dep./revenue% 2.14 1.91 3.23

    Mankind Pharma Ltd IPO Analysis of the Group’s sales by region:

    Region FY-22(in cr.) % FY-21(in cr.) % FY-20(in cr.) %
    Within India 7594.74 97.60 6028.53 97.01 5788.83 98.70
    Outside India 186.8 2.40 185.89 2.99 76.4 1.30
    Total 7781.54 100.00 6214.42 100.00 5865.23 100.00

    Mankind Pharma Ltd IPO Strengths:

    • Mankind Pharma Ltd has a scaled domestic-focused business with the potential for further growth. Between the Financial Years 2020 and 2022, the market share in terms of Domestic Sales in the Indian pharmaceutical market (IPM) increased by 0.4% from 4.0% to 4.4%, which represents the fastest growth among the 10 largest corporates in the IPM by Domestic Sales.

    • The Government of India has  announced  various  Production  Linked  Incentive  (“PLI”)  Schemes  for the promotion  of  domestic manufacturing  of  critical  key  starting  materials,  drug  intermediates, and  APIs, which  seek  to  boost domestic manufacturing of identified key starting materials, drug intermediates, and APIs by attracting large investments in the sector and thereby reduce India’s import dependence for critical APIs and  in  turn supports the growth of domestic-focused businesses

    • Between the Financial Years 2020 and 2022, Domestic Sales grew at a CAGR of approximately 16%, also outperforming the overall IPM growth in Domestic Sales of approximately 11%, by approximately 1.5 times.

    • Mankind Pharma Ltd intends to continue to increase the Covered Market presence and strengthen its position in the IPM. It had a Covered Market presence of approximately 64% of the IPM in terms of Domestic Sales for the Financial Year 2022.

    • The company has established a number of consumer healthcare brands in the condoms, pregnancy detection, emergency contraceptives, antacid powders, vitamin and mineral supplements, and anti-acne preparations categories, among others.

    Mankind Pharma Ltd IPO Risk factors:

    • Any problems in the quality control or manufacturing processes may damage the reputation, subject the company to regulatory action and expose it to litigation or other liabilities

    • The pharmaceutical  and  consumer  healthcare  industries  are  intensely  competitive  and  if the company is unable to respond adequately to the increased competition or pricing pressure it expects to face, it could lose market share and the revenues and profits could decline, which would in turn adversely affect its business

    • There are outstanding legal proceedings involving the Company, its Promoters, its Subsidiaries, and its Directors.

    • Any failure to maintain and enhance, or any damage to, its brands, product image, or reputation could adversely affect the market recognition, and trust in, the products of the company.

    • Any disruption, slow down, or shutdown in the manufacturing or R&D operations could adversely affect our business, financial condition, cash flows, and, results of operations.

    Source: Mankind Pharma Ltd DRAFT RED HERRING PROSPECTUS (DRHP)

    GO DIGIT General Insurance Limited IPO FAQ

    Ans. Mankind Pharma Ltd IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.

    Ans. The company will open for subscription on <>.

    Ans. The minimum lot size that investors can subscribe to is <> shares.

    Ans. The Mankind Pharma Ltd IPO listing date is <>.

    Ans. The minimum lot size for this upcoming IPO is <> shares.