Mankind Pharma targets ₹9,000 crore debt for BSV deal

3 Sep 2024 , 12:25 PM

Mankind Pharma Ltd, India’s fourth-largest pharmaceutical company by market share, plans to raise over ₹9,000 crore through a mix of NCDs and short-term commercial paper to finance its ₹13,630 crore acquisition of Bharat Serums and Vaccines Ltd (BSV), announced in late July.

The average blended cost of the debt is expected to be approximately 8.50%, with the firm looking to borrow money for one to five years, according to news reports.

Deutsche Bank and Barclays Plc have jointly underwritten the debt to be raised for the transaction, which is expected to be priced within the next few days, according to the reports.

A Mankind Pharma spokesperson indicated that the cash raising through bonds will be completed within a few weeks. Aside from that, “the company plans to raise Rs 2,000-3,000 crore through an equity issue this fiscal,” the official stated.

Mankind is acquiring BSV from Advent International, a private equity business. This will be the company’s largest purchase since its listing a year ago, and it will position Mankind as the market leader in the fast-growing gynaecology-fertility or women’s health area, with roughly 20% market share, edging out Emcure. In FY24, Mankind held an 8.19% market share in the segment. When the acquisition was announced, the business stated that it will be paid by internal accruals as well as a combination of debt and stock.

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