Mankind Pharma, India's fourth-largest drugmaker by domestic sales, has undertaken a qualified institutional placement (QIP) to raise up to Rs 3,000 crore, with the funds set aside to partially support its Rs 13,630-crore acquisition of Bharat Serums and Vaccines (BSV), which was announced in July of this year.
In a late-evening stock exchange filing on Monday, December 16, the business stated that it had set a floor price of Rs 2,616.55 per share based on SEBI's pricing methodology. The QIP began on December 16, 2024, with Mankind Pharma retaining the opportunity to offer a discount of up to 5% off the floor price to qualifying institutional customers.
Earlier on December 16, it was announced that Mankind Pharma would soon issue the Rs 3,000 crore QIP to partially fund its proposed acquisition of Bharat Serums and Vaccines.
Mankind Pharma shares rose 1.7 percent on Monday, closing at Rs 2,686 on the NSE, ahead of the QIP announcement. The stock has risen over 40% in the last year, bringing the company's market value to Rs 1.08 lakh crore.
Rajeev Juneja, Vice Chairman and Managing Director of Mankind Pharma, described the financial plan: "The agreement is worth roughly Rs 14,000 crore. Of this, Rs 4,000 crore would come from the company, Rs 3,000 crore from QIP, and Rs 7,000 crore from loans. Let us hope that we can repay this loan within the following three years."
The QIP was authorized in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and the Companies Act, 2013, among other applicable legislation. The company approved its preliminary placement document and application form on December 16, 2024.
According to the report, the QIP's advisors are Kotak Mahindra Capital and IIFL Capital.
Mankind Pharma's acquisition of BSV, a firm specializing in women's health, critical care, and assisted reproductive technologies, is a key step toward diversifying and strengthening its footprint in the pharmaceutical market.
