Mankind Pharma Approves Raising Rs 10,000 Crore Via NCDs, CPs

Mankind Pharma Ltd.'s board has approved raising up to Rs 10,000 crore through non-convertible debentures and commercial papers. The board has approved raising up to Rs 5,000 crore via NCDs and Rs 5,000 crore via commercial papers, according to an exchange filing on Monday.

The company will issue secured, rated, and listed NCDs, denominated in amounts up to Rs 5 lakh with a nominal value of Rs 1 lakh each, totaling a maximum of Rs 50,000 crore. The company will offer these NCDs in 3-4 distinct series, with maturities extending up to 48 months or four years.

Additionally, the company plans to issue listed and rated commercial papers, with the face value determined in accordance with applicable laws. The company will issue these commercial papers in one or more series, with a total financing amount not exceeding Rs 50,000 crore.

Earlier on Sept. 24, India's fourth-largest pharmaceutical company's Vice Chairman and Managing Director Rajeev Juneja told NDTV Profit that the company will raise Rs 7,000 crore debt to fund its acquisition of Bharat Serums and Vaccines Ltd.

In July this year, the pharma major announced plans to acquire 100% stake in Bharat Serums and Vaccines from private equity firm Advent International for Rs 13,630 crore to expand its footprint in the specialty pharma sector.

“Out of this approximately Rs 14,000 crore deal, Rs 4,000 crore will be coming from the company side. Of the remaining Rs 10,000 crore, Rs 3,000 crore will be coming from the QIP (qualified institutional placement), and the rest will be funded through debt," Juneja SAID.

Shares of Mankind Pharma were trading 1.12% lower at Rs 2,562.85 apiece, compared to a 1.11% decline in the benchmark Nifty 50 as of 12:54 p.m.

It has fallen 43.64% in the last 12 months but has risen 30.10% on a year-to-date basis. The relative strength index was at 69.22.

Twelve out of the 16 analysts tracking the company have a 'buy' rating on the stock, three recommend a 'hold rating, and one suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 5.2%.