Mankind Pharma’s Block Deal: ChrysCapital Affiliate Offloads Stake Worth Rs 2,736.8 Crore

  1. Block deal: ChrysCapital affiliate sells 3.2% stake in Mankind Pharma for Rs 2,736.8 crore.
  2. Offer price: Rs 2,103-2,214/share, 5% discount.
  3. Potential MSCI May 2024 index inclusion if revised shareholding reported by April 16.
  4. Estimated inflow of $156 million, 5.9 million shares for Mankind Pharma.
  5. Stock projected to surpass Rs 2,500 mark with limited float available.

Introduction :

Mankind Pharma saw a big block trade worth Rs 2,736.8 crore, as an affiliate of ChrysCapital decided to sell a portion of its shareholding. This transaction, involving roughly 1.3 crore shares, amounted for 3.2% of Mankind Pharma’s stock and occurred on March 26.

Blocks Deal Details :

The offer price for this transaction varied from Rs 2,103 to Rs 2,214 per share, reflecting a reduction of up to 5% below Mankind Pharma’s last closing price. Following the block trade, the company‘s shares fell about 2%, finishing at Rs 2,173.95 on the NSE at 09:25 a.m.

Stake Transferring by ChrysCapital Affiliate :

While the particular parties involved in the transaction were not immediately disclosed, CNBC-TV18 earlier reported, citing sources, that Beige Ltd, a ChrysCapital subsidiary, was looking to sell a 2.90 percent share in Mankind Pharma in block agreements. Beige Ltd’s planned offer price for this unload was predicted to be around Rs 2,460 crore at the low end of the price range.

Implications for Mankind Pharmaceuticals :

According to the most recent shareholding statistics, the ChrysCapital affiliate owns a 2.99 percent investment in Mankind Pharma. Notably, Nuvama Alternative & Quantitative Research believes that if Mankind Pharma declares its updated shareholding for the March quarter on exchanges by April 16, 2024, it will automatically qualify for inclusion in the MSCI May 2024 index rejig. The announcement for MSCI’s May review is set for May 13, with adjustments taking effect May 31.

Analysis and potential impact :

According to Nuvama Alternative and Quant Desk, Mankind Pharma’s float might approach 25%, making the company eligible for inclusion if the price remains at Rs 1,850, based on current global cutoff levels. The firm also forecasts a potential inflow of $156 million, or 5.9 million shares, for Mankind Pharma, with a major impact likely within 15 days. With minimal float available, the firm anticipates that the stock will continue to perform well and may easily achieve Rs 2,500 in the near future.

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