Beige Ltd., an affiliate of ChrysCapital, is looking to sell a portion of its stake in Mankind Pharma Ltd. through block deals. As per a term sheet reviewed by Mint, Beige Ltd. is offering to sell up to 11.63 million shares, representing 2.9% of Mankind Pharma’s total stake. Additionally, Link Investment Trust is also participating in the block deal, selling up to 58,385 shares (0.015% stake).
The total deal value is estimated to be around ₹2,459.5 crore ($295 million).
The shares are being offered within a price range of ₹2,103.21 – ₹2,213.90 per share. This translates to a discount of 0.0% to 5.0% compared to Mankind Pharma’s closing share price of ₹2,213.90 on the NSE on 22 March, 2024.
An email sent to a Mankind Pharma and ChrysCapital spokespersons remained unanswered.
IIFL Securities Ltd. and Jefferies India Pvt. Ltd. are managing the sale process.
Abhilash Pagaria, head of Nuvama Quantitative & Alternative Research, believes including Mankind Pharma’s revised shareholding for March by 16 April could qualify the stock for MSCI’s May 2024 inclusion list. “Nuvama Alternative & Quant Desk estimates a potential inflow of $156 million, equivalent to 5.9 million shares, with an impressive 15 days impact. We believe the stock, with limited float available, should continue to do well and easily cross ₹2,500 in a short time,” he added.
Currently, Beige Ltd. holds a total of 2.99% stake in Mankind Pharma. After the sale, the holding will reduce to 0.09%. This comes amidst a stellar year for Mankind Pharma’s stock price, which has surged by 98% so far this year, significantly outperforming the benchmark Nifty 50 index that has gained 30%.
It’s noteworthy that on 12 December, 2023, Mankind Pharma sold 3.59% of its stake for ₹2,640.55 crore at ₹1,832.43 per share on the BSE. Interestingly, Kotak Mahindra Midcap Fund capitalized on the dip, acquiring a 0.5% stake (2.03 million shares) for ₹371.8 crore.
