Mankind Pharma gains on raising stake in British therapeutics firm

Shares of the company have risen 12.32 percent over the past six months.

Mankind Pharma shares traded with 1 percent gains on December 18 after the pharma player raised its holding in the UK-based Actimed Therapeutics by purchasing a stake of 1.29 percent for a total consideration of £999,900.

Following the acquisition, Mankind Pharma held 10.19 percent of Actimed Therapeutics shares. For Mankind, this is a strategic investment in the field of treatment of cancer cachexia, amyotrophic lateral sclerosis, and other muscle-wasting disorders.

As of 11.20am, shares of the company were quoting Rs 1,909.25 apiece on the BSE, higher by 1.2 percent from the previous session’s closing price.

On December 12, private equity firm Chrys Capital sold Rs 3,282 crore worth of shares in Mankind Pharma through a block deal executed on the stock exchanges.

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The shares were offloaded by Chrys Capital through its subsidiary Beige Ltd, which sold 1.44 crore shares at price of 1,832.43 each in one deal, and pared 35 lakh shares at an average price of 1,832.3 apiece in another deal. Cumulatively, the UK-based firm sold 1.79 crore shares in Mankind Pharma.

According to Nuvama Alternative & Quantitative Research, the free float of Mankind Pharma before the deal stood at 10 percent, and after the mega stake sale, the company expects a significant increase in the free float.

The company's Rs 4,326-crore IPO in April was one of the biggest by a domestic pharma player since Gland Pharma's Rs 6,480-crore issue back in 2020. Mankind Pharma also made a strong debut on the bourses in May, listing at a 20 percent premium to its IPO price.

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