India's fourth largest drugmaker by domestic sales, Mankind Pharma, is set to shortly launch a QIP (qualified institutional placement) of up to Rs 3,000 crore, persons with knowledge of the matter told Moneycontrol on the condition of anonymity.
An in-principle approval for the QIP has been submitted to the exchanges, they added.
When contacted, Mankind Pharma declined to comment.
The proposed capital raise is part of Mankind Pharma's plan to fund the Rs 13,630-crore acquisition of private equity firm Advent International-owned Bharat Serums and Vaccines (BSV) announced in July.
On October 8, Moneycontrol was the first to report that the pharma major had roped in investment banks Kotak Mahindra Capital and IIFL Capital as advisors for the proposed transaction.
On September 23, Rajeev Juneja, the Vice Chairman and Managing Director of Mankind Pharma broke down the drugmaker's funding strategy for the BSV transaction in an interview to CNBC-TV18.
"The deal size is approximately Rs 14,000 crore. Of this, Rs 4,000 crore would come from the company side. Around Rs 3,000 crore would be via QIP, and Rs 7,000 crore would be for some kind of a loan. Let us hope that we just pay back this loan in next three years’ time. That's the kind of planning we have got right now," Juneja said.
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