Mankind Pharma 15 percent Stake Sale to take Valuation to 3.3 Billion Dollars

MUMBAI: Leading generic drug manufacturer Mankind Pharmaceuticals is now looking to sell parts of its shareholding taking its estimated valuation to Rs 22000 to Rs 27000 crore.

In order to buy the 15 percent stake in Mankind Pharmaceuticals, Carlyle Group has emerged as a top contender to pick the stake for 500 million dollars.

Economic Times reports that the Delhi-based company will value at about $3.3 billion after the transaction.

Privet equity firms Advent International and Apax Partners are the other players vying for a minority stake in the company.

A source knowing about the matter told ET, "The final due diligence is on and the deal negotiations are at an advanced stage. We expect to conclude a transaction by the first quarter of next fiscal."

According to the report global investment bank, Moelis & Co has been given the authorization to find a buyer.

The Delhi based company Mankind Pharmaceuticals was founded in 1995 by Ramesh Juneja and Rajeev Juneja, having an intense focus on semi-urban and rural markets. Mankind Pharma focuses on a variety of therapeutic segments such as antibiotics, anti-fungal, gastro-intestinal , anthelmintic, cardiovascular, NSAIDs, dermal & erectile dysfunction. Some of its other brands include Adiction (deodorants for men), Gas-O-Fast (sachet for hyper acidity), Kaloree-1 (artificial sweetener) and Heal-O-Kind (anti-bacterial balm).

The company has the presence in about 22 countries across Southeast Asia, Africa, and the Middle East, with the leading brand such as Manforce condoms, PregaNews and Unwanted 72. The company is best known for its over-the-counter (OTC) product portfolio and condoms sold under the brand Manforce.

The promoters family controls 89 percent stake while Capital International, a private equity firm bought 11 percent in the company last year from domestic investor ChrysCapital.

A section of the promoter family will exit through a secondary sale of shares.

The company has been planning an IPO for the last two years and is poised to go public in the next financial year reports ET.