Mankind Pharma, India’s fourth-largest drugmaker by domestic sales, has launched a qualified institutional placement (QIP) to raise up to Rs 3,000 crore, with the funds earmarked to partly finance its Rs 13,630-crore acquisition of Bharat Serums and Vaccines (BSV), announced in July this year.

The company, in a late-evening stock exchange filing on Monday, December 16, said it has set the floor price at Rs 2,616.55 per share as per SEBI's pricing formula. The QIP opened on December 16, 2024, with Mankind Pharma keeping the option to offer a discount of up to 5% on the floor price to qualified institutional buyers.

Earlier on December 16, Moneycontrol had reported that Mankind Pharma would shortly launch the Rs 3,000 cr QIP to part finance the proposed acquisition of Bharat Serums and Vaccines.

Mankind Pharma shares gained 1.7 percent on Monday to end at Rs 2,686 on NSE, ahead of the QIP announcement. The stock has jumped nearly 40 percent in the last one year, taking the company's market capitalisation to Rs 1.08 lakh crore.

In an earlier interview with CNBC-TV18, Rajeev Juneja, Vice Chairman and Managing Director of Mankind Pharma, had explained the funding plan: “The deal size is approximately Rs 14,000 crore. Of this, Rs 4,000 crore would come from the company side, Rs 3,000 crore via QIP, and Rs 7,000 crore would be raised through loans. Let us hope that we just pay back this loan in the next three years’ time.”

The QIP has been approved in line with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and the Companies Act, 2013, among other applicable laws. The company adopted its preliminary placement document and application form on December 16, 2024.

Kotak Mahindra Capital and IIFL Capital are acting as advisors for the QIP, according to a report.

The acquisition of BSV, a company specialising in women’s health, critical care, and assisted reproductive technology, marks a significant step for Mankind Pharma as it looks to diversify and strengthen its presence in the pharmaceutical industry.

Published on Dec 17, 2024 06:51 am

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