Mankind Pharma Witnessed a Sharp Decline in Stock Value Amidst Block Deal

Mankind Pharma Witnessed a Sharp Decline in Stock Value Amidst Block Deal

VoM News Desk | December 12, 2023 | 01:16 PM IST | Breaking News | Follow on Google News

Mankind Pharma Witnessed a Sharp Decline in Stock Value Amidst Block Deal Image/Reuters

Mankind Pharma Witnessed a Sharp Decline in Stock Value Amidst Block Deal

Mankind Pharma, India’s fourth-largest pharmaceutical company, experienced a notable drop of nearly 5% in its share price during early trade on Tuesday, reaching ₹1,827.50 per share.

This decline followed a significant block deal involving 3.01 crore shares, worth around ₹5,550 crore, the details of which involving buyers and sellers were not immediately available.

As per CNBC-TV18’s report on Monday, sources indicated that five private equity funds, including Beige Investment, Link Investment Fund, Cairnhill CIPEF, Cairnhill CGPE, and Hema CIPEF, were considering reducing their stakes in Mankind Pharma.

The potential sale’s floor price was set at ₹1,785.65 per share, representing a nearly 7% discount to Monday’s closing price of ₹1,920.05.

The combined stake for sale was reported to be up to 7.9% under the upsize option at ₹5,649 crore, with a base size of 6.9% at ₹4,935 crore, sources mentioned.

Mankind Pharma is involved in developing and manufacturing pharmaceutical formulations across various therapeutic areas and owns several renowned consumer healthcare brands.

With around 36 brands in its portfolio, the company holds notable products such as Manforce, Prega News, Unwanted 72, Moxikind, and Nurokind, with several products ranking in the Top 10 in their respective markets.

Upon its listing on the stock exchanges in May 2023 at ₹1,422 per share, representing a premium of 31.7% over the issue price of ₹1,080 apiece, the company’s stock has consistently climbed.

In November, it achieved a significant milestone by surpassing the ₹2,000 mark and hitting a new peak at ₹2,041.15 per share. Presently, with the stock trading at ₹1,876, it is up 76% over its issue price.

In Q2FY24, Mankind Pharma reported a substantial 21% increase in its consolidated net profit to ₹511 crore compared to ₹423 crore in the year-ago quarter and ₹494 crore in Q1 FY24.

Its revenues witnessed an 18% surge to ₹2,708 crore from ₹2,426 crore in September 2022, with domestic business revenue contributing almost all of its earnings, jumping 7% YoY to ₹2,529 crore, while export revenue stood at ₹179 crore, up 159% YoY.

By midday trading, the stock exhibited a 2.22%In case of rectification of any error in this Article, Visit on Correction Policy or Register your Query

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