In the current economic volatility, when a bank run bank run Bank Run A bank run or run on the bank occurs when many clients withdraw their money from a bank, because they believe the bank may fail in the near future. upends upends Silicon Valley Bank collapse: Here's all you need to know Read more business prospects in a day, and enterprises postpone their calculated listings indefinitely, long-termism can be underrated.

Not at Mankind Pharma, though. India’s fourth largest pharmaceutical company by domestic sales is preparing to list in the next few weeks. Five years ago, chairman Ramesh Juneja told told The Ken Mankind Pharma, beyond seductive ads and investor multiples Read more The Ken: “In the long term, we see ourselves as a listed company. Mankind is aggressive, even impish, starting from me.”

Often viewed as an upstart, Mankind has continued to be aggressive. In its product launches, entry into newer therapeutic areas, and in manoeuvring a shift from Class II-IV towns to metros and big cities. Its latter business grew 22% in the year ended March 2022—nearly 2X the overall growth of the Indian pharma market.

A private investor in Mankind confirmed to The Ken that the company—unlike Emcure Pharmaceuticals or Macleods Pharma that also filed draft red herring prospectuses (DRHPs) last year—is progressing with its initial public offering (IPO). Sell-side healthcare analysts say Mankind is looking to be valued at Rs 60,000 crore (~$7.3 billion), or at least close to Torrent Pharma. Listed in 1994, Torrent’s market capitalisation is about Rs 52,000 crore (~$6.3 billion).

As per the DRHP and news reports reports The Economic Times Mankind Pharma files DRHP for Rs 5,500 crore IPO Read more , 32-year-old Mankind intends to raise Rs 5,500 crore (~$670 million) by selling 40 million shares in an offer for sale (OFS). This means the IPO proceeds will go to the share sellers—the promoters and two private equity investors—and the company will receive no money.

It appears that after years of work, promoters are encashing their equity. Even in 2018, when the private-equity firm ChrysCapital acquired nearly 10% in Mankind for ~Rs 2,200 crore (~$300 million), it bought the shares from the promoters in a transaction valuing the company at Rs 22,150 crore (~$3 billion).

ChrysCapital won’t get anywhere near its 13X return from its first investment in Mankind, which it exited in 2015.