Mankind Pharma to sell OTC business on a slump sale basis in yet-to-be subsidiary

A Slump Sale is the sale of any undertaking as a going concern, where the consideration is in lump sum and individual values are not taken into account.

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26 Aug, 2025 12:21

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Homegrown drugmaker Mankind Pharma Ltd plans to conduct a slump sale of its over the counter (OTC) business to a wholly owned subsidiary, it said in an exchange filing.

Shares of the company reacted positively and were trading 2.72 percent higher at Rs 2,375.30 on the NSE at 2.37pm on April 2.

At a board meeting held during the day, it was proposed to incorporate the subsidiary with the name Mankind Consumer Products Private Limited or any other name as approved by the Ministry of Corporate Affairs.

Revenue of the OTC business for FY 2022-23 stood at Rs 704 crore (8.7 percent of Rs 8,127 crore being revenue of the  parent company). The net worth of the OTC business of the company as on March 31, 2023, stood at Rs 155 crore (2 percent of net worth of the parent company).

Subject to regulatory, statutory and other approvals, if any, the slump sale will be effective on or before October 1, 2024. The proposed wholly owned subsidiary will be incorporated in India and shall carry out the business of trading and manufacturing of various types of consumer healthcare products predominantly over the counter drugs and products.

Mankind's new subsidiary will have an initial paid-up capital of Rs 5 crore with a further investment of up to  Rs 250 crore in one or more tranches, the press statement added.

Slump sale is the sale of any undertaking as a going concern, where the consideration is in lump sum and individual values are not taken into account.

Mankind Pharma's marquee OTC products include condom brand Manforce, pregnancy test kit Prega News, AcneStar, HealthOk multivitamin tablets, oral contraceptive brand Unwanted and Gas-O-Fast.

Also read: Essential medicines to be slightly costlier from April 1