Started with Rs 50 lakh, this 4th-largest pharma firm in terms of domestic sales is now aiming for IPO
A pharmaceutical company which was founded in Meerut in the year 1995 with an initial capital of Rs 50 lakh is now mulling raising funds through initial public offerings (IPO) in the next two months as per market reports. Rajeev Juneja (56), Vice Chairman and MD said that the company’s decision to bring combinations of medicines, a robust network with doctors, solid budget-efficient research and development including globally being the second company to manufacture Dydrogesterone and picking superstars like Amitabh Bachchan, Mohan Lal, Vijay Sethupathi and other celebrities as brand ambassadors have transformed the company.
As a result, the net debt-free company which was generating revenue of Rs 50 crore in 2000-01 crossed Rs 500 crore in 2006-07 and Rs 5,000 crore in 2018-19. This is India’s fourth-largest pharmaceutical company in terms of domestic sales Mankind Pharma.
The company generated consolidated revenue of Rs 7,781.56 crore in FY22 and Rs 6,214.43 crore in FY21, according to the draft red herring prospectus (DRHP). The company was founded by Rajeev Juneja together with his eldest brother Ramesh Juneja and sister Prabha Arora 28 years ago. At present, Prabha Arora’s son Sheetal Arora represents the company on her behalf.
Juneja, who also worked as a medical representative in his fostering years, told Business Today that they shifted their headquarters to Delhi in 2004 for better reach. “With over 18,000 plus employees at present, we have covered 4 lakh doctors, more than 14,000 field force and Mankind Pharma has a strong marketing focus.” Juneja said.
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. Over the years, Mankind Pharma has established several brands in the condoms, pregnancy detection, emergency contraceptives, antacid powders, vitamin and mineral supplements and anti-acne preparations categories.
Mankind Pharma, which generates 98 per cent of its revenue from India, does not have any plans to focus on increasing its exports. “We are very optimistic about the Indian markets for the next 20-30 years and don’t have any plans to focus on the rest of the world,” Juneja said, adding that most companies spend more on research and development because they depend on exports.
“We are India-centric. That is why our spending on R&D is just 2-2.5 per cent,” he said.
The forthcoming public offer will comprise an offer for sale of over 4 crore equity shares by the company’s promoters and existing shareholders comprising 10% of the post-offer paid up Equity share capital of the company. The entire proceeds from the offer will be paid to the selling shareholders in proportion to the equity shares offered by the selling shareholders in the offer for sale and the company will not receive any proceeds from the offer, as per the DRHP. Shareholding of promoters will decline to 76.50 per cent post the public offer from 79 per cent at present.
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