Mankind Pharma IPO Basis of Allotment

	MANKIND PHARMA LIMITED
	Our Company was incorporated on July 3, 1991, as a private limited company under the Companies Act, 1956, with the name 'Mankind Pharma Private Limited', pursuant to a certificate of incorporation granted by the Registrar of Companies, Delhi and Haryana, at New Delhi ("RoC"). Pursuant to the conversion of our Company to a public limited company and as approved by our Shareholders pursuant to a special resolution dated July 14, 2005, the name of our Company was changed to "Mankind Pharma Limited' and the RoC issued a fresh certificate of incorporation on April 13,2006. For details of changes in our name and the Registered Office, see "History and Certain Corporate Matters - Brief history of our Company" and "History and Certain Corporate Matters - Changes in the Registered Office" on page 245 of the Prospectus of the Company dated April 28,2023 filed with the RoC ("Prospectus')
	Registered Office: 208, Okhla Industrial Estate, Phase-Ill, New Delhi -110 020, Delhi, India; Tel: +91 11 4747 6600; Corporate Office: 262, Okhla Industrial Estate, Phase-Ill, New Delhi -110 020, Delhi, India; Tel: +91 11 4684 6700
	Contact Person: Pradeep Chugh, Company Secretary and Compliance Officer; Tel: +91 11 4684 6729; E-mail: investors@mankindpharma.com; Website: www.mankindpharma.com; Corporate Identity Number: U74899DL1991PLC044843

Our Company has filed the Prospectus dated April 28, 2023 with the RoC and the Equity Shares are proposed to be listed on the Main Board of the National Stock Exchange of India Limited ("NSE") and the BSE Limited ("BSE") and the trading will commence on May 9, 2023.

INITIAL PUBLIC OFFERING OF 40.058.844 EQUITY SHARES OF FACE VALUE OF Rs. 1 EACH ("EQUITYSHARES’ )OF MANKIND PHARMA LIMITED ("OUR COMPANY" OR THE "ISSUER ) FOR CASH AT A PRICE OF Rs. 1,080 PER EQUITY SHARE (‘ OFFER PRICE") AGGREGATING TO Rs. 43,263.55 MILLION. COMPRISING AN OFFER FOR SALE OF 3,705.443 EQUITY SHARES AGGREGATING TO Rs. 4,001.88 MILLION BY RAMESH JUNEJA, 3,505,149 EQUITY SHARES AGGREGATING TO Rs. 3,785.56 MILLION BY RAJEEV JUNEJA, 2,804,119 EQUITY SHARES AGGREGATING TO Rs. 3,028.45 MILLION BY SHEETAL ARORA (COLLECTIVELY. THE "PROMOTER SELLING SHAREHOLDERS"), 17.405.559 EQUITY SHARES AGGREGATING TO Rs. 18,798.00 MILLION BY CAIRNHILL CIPEF LIMITED, 2,623,863 EQUITY SHARES AGGREGATING TO Rs. 2,833.77 MILLION BY CAIRNHILL CGPE LIMITED, 9,964,711 EQUITY SHARES AGGREGATING TO Rs. 10,761.89 MILLION BY BEIGE LIMITED AND 50,000 EQUITY SHARES AGGREGATING TO Rs. 54 00 MILLION BY LINK INVESTMENT TRUST (COLLECTIVELY, THE ‘ INVESTOR SELLING SHAREHOLDERS’) (THE "PROMOTER SELLING SHAREHOLDERS" AND THE "INVESTOR SELLING SHAREHOLDERS". TOGETHER, THE SELLING SHAREHOLDERS") (THE OFFER FOR SALE" OR THE "OFFER"). THE OFFER SHALL CONSTITUTE 10% OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

1. Dependence on Third Party Manufacturers: We depend on third-party manufacturers for some of our finished formulations and approximately 25% of our total revenues were from products manufactured through third-party manufacturing arrangements for the past three financial years and nine months ended December 31,2021 and December 31,2022.

2. Concentration Risk: As of December 31, 2022,18 of our 25 manufacturing facilities were located in Himachal Pradesh. We have two API manufacturing facilities located in Andhra Pradesh and Rajasthan, which are operated through our subsidiaries, JPR Labs Private Limited and Shree Jee Laboratory Private Limited.

3. Raw Material Import Risk: We depend on third-party suppliers for supply of certain raw materials and approximately 9% of our raw materials were directly imported during the nine months ended December 31,2022, of which approximately 6% was directly imported from China.

4. Financial Risk: Our EBITDA margin, PAT margin and Return on Capital Employed (not annualized) has decreased from 28.30%, 20.81%, 25.08% during the nine months ended December 31, 2021, respectively, to 22.30%, 15.17% and 16.58% during the nine months ended December31, 2022, respectively.

5. Dependence on Domestic Market: We are heavily focused on the Indian market and approximately 97% of our revenue from operations is from India for the past three Financial Years and nine months ended December 31, 2021 and December 31, 2022. Significant portion of our domestic sales is from certain therapeutic areas, such as anti- infectives, cardiovascular and gastrointestinal.

6. Regulatory Risk: We operate in a highly regulated industry and our operations include development, testing and research, which may lead to restrictions on marketing practices, compliance with product quality standards, manufacturing processes stipulated by regulators and price controls as levied on certain products by government.

7. Weighted average cost of acquisition of all Equity Shares transacted in past one year and from one year to past three years preceding the date of the Prospectus:

The Offer was made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (the "SCRR"). read with Regulation 31 of the SEBI ICDR Regulations. The Offer was made through the Book Building Process in accordance with Regulation 6(1) of the SEBI ICDR Regulations wherein not more than 50% of the Offer was made available for allocation on a proportionate basis to QIBs (the "QIB Portion"). Our Company and the Selling Shareholders, in consultation with the BRLMs, allocated up to 60% of the QIB Portion to Anchor Investors on a discretionary basis, in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended ("SEBI ICDR Regulations") (the "Anchor Investor Portion"), of which one-third was reserved for domestic Mutual Funds, subject to valid Bids having been received from the domestic Mutual Funds at or above the price at which allocation was made to Anchor Investors ("Anchor Investor Allocation Price"). Further, 5% of the Net QIB Portion was made available for allocation on a proportionate basis only to Mutual Funds, subject to valid Bids having been received at or above the Offer Price, and the remainder of the Net QIB Portion was made available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids having been received at or above the Offer Price. Further, not less than 15% of the Offer was made available for allocation to Nils ("Non-Institutional Category") of which one-third of the Non-Institutional Category was made available for allocation to Bidders with an application size of more than Rs. 200,000 and up to Rs. 1,000,000 and two-thirds of the Non-Institutional Category was made available for allocation to Bidders with an application size of more than Rs. 1,000,000 and under-subscription in either of these two sub-categories of Non-Institutional Category were allocated to Bidders in the other sub-category of Non-Institutional Category in accordance with the SEBI ICDR Regulations, subject to valid Bids having been received at or above the Offer Price. Further, not less than 35% of the Offer was made available for allocation to Rlls ("Retail Category"), in accordance with the SEBI ICDR Regulations, subject to valid Bids having been received from them at or above the Offer Price. All Bidders (except Anchor Investors) were required to mandatorily participate in this Offer only through the Application Supported by Blocked Amount "ASBA") process and were required to provide details of their respective bank account (including UPI ID (defined hereinafter) in case of UPI Bidders (defined hereinafter)) in which the Bid Amount was blocked by the Self Certified Syndicate Banks ("SCSBs") or the Sponsor Bank(s), as the case may be. Anchor Investors were not permitted to participate in the Anchor Investor Portion through the AS BA process. For details, see "Offer Procedure" beginning on page 527 of the Prospectus.

The bidding for Anchor investors opened and closed on Monday. April 24.2023. The Company received 77 applications from 51 Anchor Investors for 12.214.397 Equity Shares. The Anchor Investor Offer Price was finalized at Rs. 1,080 per Equity Share. A total of 12.017,652 Equity Shares were allocated under the Anchor Investor Portion aggregating to Rs. 12,979.064,160.

The Offer received 419,252 applications for 441.831.702 Equity Shares (prior to technical rejections) resulting in 11.0296 times subscription as disclosed in the Prospectus. The details of the applications received in the Offer from various categories are as under (before technical rejections):

Final Demand

A summary of the final demand as per BSE and NSE as on the Bid/Offer Closing Date as at different Bid prices is as under:

*Cairnhill CIPEF Limited and Caimhill CGPE Limited have transferred total 16,023,538 Equity Shares at price of Rs. 977.18 per Equity Share on April 6, 2023 to Hema CIPEF (I) Limited and Hema CGPE (!) Limited which at the time of entering into the share purchase agreement dated March 31, 2023 were affiliates ofCairnhill CIPEF Limited and Cairnhill CGPE Limited.

'Excluding transfer by way of gift as no consideration was paid.

8. Weighted average cost of acquisition ("WACA") compared to Offer Price:

9. The five Book Running Lead Managers associated with the Offer have handled 84 public offers in the past three Financial Years, out of which 29 offers closed below the IPO price on the listing date.

*lssues handled where there were no common BRLMs

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being the NSE on Wednesday, May 3,2023.

The Basis of Allotment to the Retail Individual Investors, who have bid at the Cut-Off Price or at the Offer Price of Rs. 1,080 per Equity Share, was finalized in consultation with the NSE. This category has been subscribed to the extent of 0.8943 times. The total number of Equity Shares Allotted in Retail Portion is 12,538,500 Equity Shares to 375.879 successful Retail Individual Investors. The category-wise details of the Basis of Allotment are as under:

The unsubscribed portion of 1.482.096 Equity Shares spilled over to QIB Category and NIB category In the ratio of 50:15.

The Basis of Allotment to the Non-Institutional Investors (more than Rs. 2 lakhs and upto Rs. 10 lakhs), who have bid at the Offer Price of Rs. 1,080 per Equity Share or above, was finalized in consultation with the NSE. This category has been subscribed to the extent of 1.3413 times (including spillover from Retail Individual Investors category). The total number of Equity Shares allotted in this category is 2,116.950 Equity Shares (including spillover of 114.008 Equity Shares from Retail Individual Investors category) to 10.856 successful Non- Institutional Investors (more than Rs. 2 lakhs and upto Rs. 10 lakhs). The category-wise details of the Basis of Allotment are as under:

Includes spillover of 114,008 Equity Shares from Retail Individual Investors category.

Please Note: 1 additional Share shall be allotted to 30 Allottees from amongst 1,128 Successful Applicants from the categories 208-923 (i.e. excluding successful applicants from Category 195) in the ratio of 5:188.

The Basis of Allotment to the Non-Institutional Investors (more than Rs. 10 lakhs), who have bid at the Offer Price of Rs. 1,080 per Equity Share or above, was finalized in consultation with the NSE. This category has been subscribed to the extent of 4.4270 times (including spillover from Retail Individual Investors category). The total number of Equity Shares Allotted in this category is 4,233,900 Equity Shares (including spillover of 228,015 Equity Shares from Retail Individual Investors category) to 15,388 successful Non- Institutional Investors (more than Rs. 10 lakhs). The category- wise details of the Basis of Allotment are as under: (Sample)

Includes spillover of 228.015 Equity Shares from Retail category

Please Note: 1 additional Share has been allotted to Category 936 in the ratio of 17:353.

Allotment to QIBs, who have Bid at the Offer Price of ? 1.080 per Equity Share or above, has been done on a proportionate basis in consultation with the NSE. This category has been subscribed to the extent of 43.1451 times of NetQIB Portion (including spillover from Retail Individual Investors category). As per the SEBIICDR Regulations, Mutual Funds were allotted 5% of the Equity Shares of Net QIB Portion available i.e., 457,593 Equity Shares (including spillover of 57,004 Equity Shares from Retail Individual Investors category) and other QIBs and unsatisfied demand of Mutual Funds were allotted the remaining available Equity Shares i.e . 8.694,249 Equity Shares (including spillover of 1,083,069 Equity Shares from Retail Individual Investors category) on a proportionate basis. The total number of Equity Shares allotted in the Net QIB Portion is 9.151,842 Equity Shares (including spilled over of 1,140,073 Equity Shares from Retail Individual Investors category), which were allotted to 227 successful QIB Bidders. The category-wise details of the Basis of Allotment are as under:

Includes spilled over of 1.140,073 Equity Shares from Retail Individual Investors Category.

The Company and the Selling Shareholders, in consultation with the BRLMs. have allocated 12.017.652 Equity Shares to 51 Anchor Investors (through 77 Anchor Investor Application Forms) (including 16 domestic Mutual Funds through 41 schemes) at the Anchor Investor Offer Price of Rs. 1.080 per Equity Share in accordance with the SEBI ICDR Regulations. This represents 60% of the QIB Portion.

The IPO Committee of our Company at its meeting held on May 4, 2023 has taken on record the Basis of Allotment of Equity Shares approved by the Designated Stock Exchange, being NSE and has allotted the Equity Shares to various successful applicants. The Allotment Advice-cum- Unblocking Intimations and/ or notices have been dispatched to the address of the investors as registered with the depositories. Further, the instructions to the Self Certified Syndicate Banks for unblocking of funds, transfer to Public Offer Account have been issued on May 3, 2023 and payment to non-Syndicate brokers have been issued on May 4, 2023. In case the same is not received within ten days, investors may contact the Registrar to the Offer at the address given below. The Equity Shares allotted to the successful Allottees have been uploaded on May 4, 2023 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has filed the Listing application with NSE and BSE on May 4, 2023. The Company has received listing and trading approval from NSE and BSE and the trading will commence on May 9, 2023.

Note: All capitalised terms used and not specifically defined herein shall have the same meaning as ascribed to them in the Prospectus.

The details of the allotment made will be hosted on the website of the Registrar to the Offer. KFin Technologies Limited at www.kfintech.com All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the First/ sole Bidder, Bid cum Application Form number. Bidder DP ID. Client ID. PAN. date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares applied for, the name and address of the Designated Intermediary where the Bid cum Application Form was submitted by the Bidder and a copy of the Acknowledgment Slip received from the Designated Intermediary at the address given below:

KFin Technologies Limited

Selenium, Tower B, Plot No. 31 and 32 Financial District, Nanakramguda,

Serilingampally, Hyderabad. Rangareddi - 500 032. Telangana. India

Tel: +91 40 6716 2222

E-mail: mankind.ipo@kfintech.com

Website: www.kfintech.com

Investor Grievance E-mail: einward.ns@kfintech.com

Contact Person: M Murali Krishna

SEBI Registration No: INR000000221

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF MANKIND PHARMA LIMITED.

MANKIND PHARMA LIMITED (the "Company") has filed the Prospectus dated April 28,2023. The Prospectus is available on the website of SEBI at www.sebi.gov.in, websites of the Stock Exchanges i.e. BSE and NSE at www.bseindia.com and www.nseindia.com, respectively, and is available on the websites of the BRLMs, i.e. Kotak Mahindra Capital Company Limited, Axis Capital Limited, IIFL Securities Limited, Jefferies India Private Limited and J.P. Morgan India Private Limited at https://investmentbank.kotak.com, www.axiscapital.co.in, www.iiflcap.com,www.jefferies.com and www.jpmipl.com, respectively. Investors should note that investment in equity shares involves a high degree of risk and for details relating to such risk, please see the section titled "Risk Factors "on page 44 of the Prospectus. The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") and. unless so registered, may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to. the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold (i) in the United States only to persons that are reasonably believed to be "qualified institutional buyers" (as defined in Rule 144A) pursuant to Section 4(a) of the U.S. Securities Act, and (ii) outside the United States in "offshore transactions" as defined in and in compliance with Regulation S and the applicable laws of the jurisdiction where those offers and sales occur. There will be no public offering of the Equity Shares in the United States.