Apax Partners, Carlyle front-runners for Mankind Pharma stake sale

Delhi based Mankind Pharma, one of India's top pharmaceutical companies and maker of leading brands like Manforce condoms, PregaNews & Unwanted 72 is in advanced stages of a mega fund raising round with two private equity players emerging as front-runners, multiple sources familiar with ongoing negotiations told ET NOW on the condition of anonymity. ET NOW was the first to report the stake sale talks on 25th September.

"Apax Partners & Carlyle have been shortlisted and are currently the front-runners for the proposed stake sale by Mankind Pharma," said two sources on the condition of anonymity.

"Mankind Pharma is looking to sell 10%-15% stake and is eyeing a premium valuation between Rs 22000 crores to Rs 27000 crores. Warburg Pincus may also be in the fray for the deal," added a third source.

Mankind Pharma has grown at a scorching pace in recent years and has witnessed private equity investments in the past with ChrysCapital raking in a ten-fold gain when it sold its 11% stake held in the company for seven years to Capital International for a little over $200 mn.

ET NOW is awaiting email responses from Mankind Pharma, Apax Partners & Warburg Pincus. When contacted, Carlyle declined to comment.

According to the company website, 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 18 manufacturing units in Paonta Sahib, Himachal Pradesh. ?It reported revenues of around Rs 4,400 crores in FY 16-17 and operates in 22 countries with a workforce of more than 14,000 employees, the website said.