Shares of Mankind Pharma were tanking sharply on Tuesday amid reports of a massive block deal by multiple private equity firms.

What Happened: Five private equity funds—Beige Investment, Link Investment Fund, Cairnhill CIPEF, Cairhill CGPE and Hema CIPEF—are considering a stake reduction in Mankind Pharma through a block deal, sources told CNBC-TV18.

The likely floor price has been set at ₹1,785.65 per share, representing a nearly 7% discount to Monday’s closing price of ₹1,920.05. Sources further indicate that the combined stake for sale could reach up to 7.9% under the upsize option, valued at ₹5,649 crore. The base size is estimated at 6.9%, amounting to ₹4,935 crore.

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Mankind Pharma shares have seen a 35% gain year-to-date, with a one-month increase of 4.58%.

Making its debut on May 9, 2023, Mankind Pharma listed at ₹1,300 apiece, a 20.4% premium to the issue price of ₹1,026-₹1,080 per share. The pharmaceutical and consumer health company’s ₹4,300 crore initial public offering (IPO) was open for subscription from April 25 to April 27.

As the fourth-largest pharma company in terms of domestic sales, Mankind Pharma manufactures popular brands such as Manforce, PregaNews and Unwanted 72, which have gained widespread consumer popularity. Notably, 98% of the company’s sales come from India.

Price Action: Mankind Pharma’s shares were down 3.86% at ₹1,846 at the start of trade on Tuesday.

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