Mankind Pharma Ltd is set to raise over Rs 9,000 crore through a mix of non-convertible debentures (NCDs) and short-term commercial paper. This financing is intended to support its Rs 13,630 crore acquisition of Bharat Serums and Vaccines Ltd (BSV), announced in late July, as per an Economic Times report.
The average blended cost of the debt is anticipated to be around 8.50 percent, with the borrowing term extending from one to five years, based on demand, according to sources cited in the report. Bankers have already reached out to large mutual funds for debt placement, with the structure accommodating terms ranging from one year to five years, it stated.
The debt for the acquisition has been jointly underwritten by Deutsche Bank and Barclays Plc and is expected to be priced within the next few days, as per the report.
Moneycontrol could not independently verify the report.
Earlier this May, Mankind Pharma's board approved an equity fundraising of Rs 7,500 crore and raised its borrowing limit to Rs 12,500 crore.
Moneycontrol has exclusively reported on multiple facets of the Bharat Serums sale process since late last year.
The company will be acquiring Bharat Serums and Vaccines Ltd (BSV) from private equity firm Advent International. This acquisition will position the company as the market leader in the rapidly growing gynaecology-fertility or women's health segment, with around 20 percent market share, surpassing Emcure, as per the report.
With more than five decades of experience in biopharmaceuticals, BSV has a niche portfolio offering in women's Health, encompassing the entire lifecycle – from fertility to post-pregnancy.
Mankind’s market share in this segment was 8.19 percent in FY24. The company intends to finance the acquisition through a combination of internal accruals, debt, and equity.
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