Mankind Pharma stock drops nearly 5% on block deal; 5 PE funds likely sellers

Shares of Mankind Pharma, India’s fourth-largest pharmaceutical company, tumbled nearly 5% in early trade on Tuesday, reaching ₹1,827.50 apiece. This downturn came after 3.01 crore shares of the company changed hands in a block deal window on Tuesday. The total worth of the transaction was around ₹5,550 crore. The buyers and sellers, however, were not known immediately. 

Five private equity funds, including Beige Investment, Link Investment Fund, Cairnhill CIPEF, Cairhill CGPE, and Hema CIPEF, were likely to reduce their stake in Mankind Pharma, CNBC-TV18 had reported on Monday, citing sources.

The floor price for the potential sale was reportedly set at ₹1,785.65 per share, representing a nearly 7% discount to Monday's closing price of ₹1,920.05, as per the report. Sources told CNBC-TV18 that the combined stake up for sale was up to 7.9% under the upsize option at ₹5,649 crore, while the base size was 6.9% at ₹4,935 crore.

Also Read: IREDA share price hits all-time high, up 218% from its issue price

Mankind Pharma develops and manufactures pharma formulations across various acute and chronic therapeutic areas and owns several consumer healthcare brands. MPL has around 36 brands, including Manforce, Prega News, Unwanted 72, Moxikind, and Nurokind, with several products ranking in the Top 10 in the covered markets.

Also Read: Orchid Pharma: Investec initiates coverage with 'buy', sees 23% upside – 5 key reasons

The company's shares debuted on the Indian stock exchanges on May 09, 2023, for ₹1,422, reflecting a 31.7% premium over the issue price of ₹1,080 apiece. The stock has sustained its upward trajectory since its listing, reaching a milestone in November by surpassing the ₹2,000 mark and hitting a new peak at ₹2,041.15 apiece.

Taking the current market price of ₹1,876 into consideration, the stock is up 76% over its issue price. 

Also Read: Navigating risks and opportunities in mid and small-cap stocks: Expert insights

In Q2FY24, the company reported a 21% surge in its consolidated net profit at ₹511 crore. The company had reported a net profit of ₹423 crore in the year-ago quarter and ₹494 crore in Q1 FY24.

It reported an 18% surge in revenues to ₹2,708 crore from ₹2,426 crore in September 2022. The company's revenue from the domestic business, which contributes almost all of its revenue, jumped 7% YoY to ₹2,529 crore, and export revenue came in at ₹179 crore, up by 159% YoY.

At 12:00 PM, the stock was trading with a drop of 2.22% at ₹1,877.65 apiece.