Shares of Mankind Pharma were on the climb on Thursday after a large block deal in the company’s shares, likely initiated by the condom manufacturer’s promoters to adhere to minimum shareholding norms.
What Happened: Promoter Sheetal Arora, along with Arjun Juneja and Puja Juneja said on Wednesday that they intend to sell a portion of their shareholding in Mankind Pharma.
The offer, valued at ₹1,330.4 crore at the floor price, constitutes around 1.62% of the company’s outstanding shares and is set at a 3.7% discount to its last closing price. Kotak Mahindra Capital and IIFL Capital are advising on the deal, which includes a 90-day lock-in period for the sellers.
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The move aims to reduce the promoters’ stake from 76.5% to 74.88%, ensuring compliance with minimum shareholding norms. Arora planned to sell 0.45% or 18.17 lakh shares, while Arjun Juneja and Puja Juneja aimed to sell 0.6% or 24.01 lakh shares and 0.57% or 22.7 lakh shares of their respective shareholdings.
Mankind Pharma’s IPO was entirely an offer for sale, raising ₹4,326 crore, marking the largest IPO by a pharma company since Gland Pharma in 2020, which raised ₹6,480 crore. Mankind Pharma debuted in May 2023 at a 32% premium to its IPO price of ₹1,080,
Price Action: Mankind Pharma shares were up 5.04% at ₹2,235.50 in the early session of trade on Thursday.
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