Significant Block Deal in Mankind Pharma: What You Need to Know

In a notable development in the Indian stock market, 37 lakh shares, equivalent to 0.9% of the total equity of healthcare products manufacturer Mankind Pharma Ltd., changed hands in multiple block deals during early trading on Wednesday. The shares were traded at an average price of Rs 2,083 per share, culminating in a total transaction value of Rs 770.71 crore. 

Details of the Block Deal

Transaction Overview

The identity of the buyers and sellers involved in these transactions remains undisclosed. However, reports suggest that a significant portion of this deal could be attributed to Capital Group Affiliate, Hema CIPEF, which is planning to offload 0.9% of the company’s equity via block deals. This sale is estimated to be valued at around ₹762.6 crore.

Floor Price and Stakeholders

The floor price for this transaction was set at ₹2,061 per share, representing a 2% discount from the closing price on Tuesday. As of the March quarter, Hema CIPEF held a 2.22% stake in Mankind Pharma.

Shareholder Composition

Domestic and Foreign Stakeholders

At the end of the March quarter, domestic mutual funds in India held an 8.57% stake in Mankind Pharma. In addition, Foreign Portfolio Investors (FPIs) had a 9.87% stake in the company.

 Mankind Pharma’s Market Performance

IPO and Stock Movement

Mankind Pharma made its stock market debut in May of the previous year, with an initial public offering (IPO) price set at ₹1,300 per share. Since then, the stock has surged over 60% from its IPO price. On Tuesday, the shares closed 2% higher, reflecting positive market sentiment.

About Mankind Pharma

Company Profile

Mankind Pharma (MPL) is a prominent player in the Indian pharmaceutical industry. The company is engaged in the development, manufacturing, and marketing of a wide array of pharmaceutical formulations covering various acute and chronic therapeutic areas. Additionally, MPL produces several consumer healthcare products.

Market Position

In terms of domestic sales, Mankind Pharma is the fourth largest pharmaceutical company in India. Over the past seven years, it has consistently ranked number one by the volume of prescriptions. Furthermore, MPL holds the third position in the domestic market in terms of sales volumes.

Therapeutic Areas

MPL’s pharmaceutical portfolio encompasses a diverse range of therapeutic areas, including anti-infectives, cardiovascular, gastrointestinal, anti-diabetic, neuro/CNS, vitamins, minerals, and nutrients (VMNs), and respiratory conditions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.