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Mankind Pharma Launches ₹3,000-Crore QIP to Fund BSV Acquisition

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Synopsis:

Mankind Pharma plans a ₹3,000-crore QIP at ₹2,520/share, causing a 2.9% equity dilution. Funds will repay debt linked to its ₹14,000-crore Bharat Serums acquisition.


Mankind Pharma is gearing up to launch a Qualified Institutional Placement (QIP) to raise ₹3,000 crore. The issue price is expected to be approximately ₹2,520 per share, resulting in an estimated 2.9% equity dilution post-issue. The funds will primarily be used to repay debt incurred during the ₹14,000-crore acquisition of Bharat Serums and Vaccines (BSV).

Also read: Gravita India Launches ₹750-Crore QIP at ₹2,206.49/Share Floor Price

MANKIND PHARMA LIMITED

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2660.8-1.00 (-0.03 %)

Updated - 18 December 2024
2680.95day high
DAY HIGH
2660.80day low
DAY LOW
494907
VOLUME (BSE)

Key Takeaways

  • QIP Details: ₹3,000 crore at ₹2,520/share, 2.9% equity dilution expected.

  • Purpose: Debt repayment for BSV acquisition.

  • Mankind Pharma Share Price: Shares recently settled at ₹2,686.05 on NSE, reflecting a strong 35% YTD gain.

Also read: ADIA to Divest ₹1,903-Crore Stake in Mindspace REIT at ₹350/Share

Mankind Pharma’s Bharat Serums acquisition

The ₹14,000-crore acquisition of Bharat Serums and Vaccines was financed through a mix of reserves, loans, and the upcoming QIP. Mankind Pharma allocated ₹4,000 crore from its reserves, while ₹7,000 crore was secured via loans. The remaining ₹3,000 crore will be raised through the QIP, bolstering its financial stability for long-term growth.

Q2 performance and financial highlights

Mankind Pharma posted impressive financial results for Q2 FY25, showing robust growth across key metrics:

Metric

Q2 FY25

Q2 FY24

Growth (%)

Net Profit

₹653.5 crore

₹501 crore

30.4%

Revenue from Operations

₹3,076.5 crore

₹2,708.1 crore

13.6%

EBITDA

₹850 crore

₹682.6 crore

24.5%

IPO and market performance

Mankind Pharma’s IPO in April 2023 marked one of the biggest public offerings by a pharma company in recent years, raising ₹4,326 crore. Since its listing at ₹1,300 per share, the Mankind Pharma share price has surged over 90%, delivering a strong return to investors. The stock settled at ₹2,686.05 on Monday, up 1.7%, reflecting continued investor confidence.

Mankind Pharma’s ₹3,000-crore QIP underscores its strategic focus on managing its debt burden while maintaining strong financial performance. With the recent BSV acquisition and steady growth across key metrics, the company remains poised for long-term success.

Also read: HCC Launches ₹400-Crore QIP with Floor Price of ₹45

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Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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