Mankind Pharma sees Rs 2,736.8 cr block deal as ChrysCapital affiliate offloads stake

Beige Ltd currently holds a 2.99 percent stake in Mankind Pharma.

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Around 1.3 crore shares, making up 3.2 percent equity in Mankind Pharma changed hands in a block deal worth Rs 2,736.8 crore on March 26.

Following the block trade, shares of Mankind Pharma slipped around 2 percent and at 09.25 am, were trading at Rs 2,173.95 on the NSE.

While Moneycontrol could not immediately identify the parties involved in the transaction, CNBC-TV18 had reported on March 25 citing sources that Beige Ltd, an affiliate of private equity firm ChrysCapital, was looking to offload a 2.90 percent stake in drugmaker through block deals.

The offer price for the transaction was expected to be around Rs 2,103-2,214 apiece, reflecting a discount of up to 5 percent from the previous close, the report stated. At the lower range of the offer price, the transaction was aimed to earn Beige Ltd Rs 2,460 crore.

The ChrysCapital affiliate held a 2.99 percent stake in Mankind Pharma, as per the company's latest shareholding data.

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According to Nuvama Alternative & Quantitative Research, if Mankind Pharma's revised shareholding for the March quarter is reported on exchanges by April 16, 2024, then the stock should automatically qualify for MSCI May 2024 inclusion during the index rejig. MSCI's May review announcement is scheduled on May 13 while the adjustment to the rebalance will come into effect from May 31.

"We estimate the float to move to 25 percent, making the stock safe to qualify if it stays Rs 1,850 as per current global cutoff levels," the firm added.  Nuvama Alternative and Quant Desk also estimated a potential inflow of $156 million, equivalent to 5.9 million shares for Mankind Pharma, with an impressive 15 days impact. The firm also expects the stock, with limited float available, to continue to do well and easily cross Rs 2,500-mark in a short time.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.