Mankind Pharma Pledges 39.68% Stake in Bharat Serums for ₹5,000 Crore NCDs

Mankind Pharma Limited has pledged 39.68% of its equity stake in its fully-owned subsidiary, Bharat Serums and Vaccines Limited (BSV), to raise ₹5,000 crore through non-convertible debentures (NCDs). 

This move is in compliance with the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Catalyst Trusteeship Limited has been appointed as the common security trustee for these NCDs.

Stock Performance and Market Capitalisation

On November 18, 2024, Mankind Pharma share price rose by 1.24%, touching the high price of ₹2,645.85 as of 11:46 AM on the NSE. The company currently has a market capitalisation of ₹1,05,267 crore. Earlier, the stock reached its 52-week high of ₹2,874 on November 6, 2024, as per the National Stock Exchange (NSE).

Details of the Pledge and Debenture Issuance

Mankind Pharma disclosed that it entered into 3 Debenture Trust Deeds with Catalyst Trusteeship Limited on October 10, 2024, to issue listed, rated, secured, redeemable, transferable NCDs amounting to ₹5,000 crore. The pledge agreement, finalised on November 14, 2024, involves the 39.68% equity stake in BSV as collateral until the NCD obligations are fulfilled.

Bharat Serums Becomes Wholly-Owned Subsidiary

On October 23, 2024, Bharat Serums and Vaccines became a fully-owned subsidiary of Mankind Pharma. The pledged shares will remain under the security agreement and are not considered a sale or disposal of shares, so no related-party transaction is involved.

Strategic Financing for Growth

This pledge demonstrates Mankind Pharma’s strategy to secure crucial debt funding for its expansion plans. It highlights the importance of Bharat Serums and Vaccines as a key asset in its portfolio, supporting the company’s financial commitments and future growth prospects.

About Mankind Pharma Limited

Mankind Pharma Limited, established in 1995, is a leading pharmaceutical company that develops, manufactures, and markets a wide range of pharmaceutical formulations across acute and chronic therapeutic areas and several consumer healthcare products. Over the past 5 years, the company has maintained the top prescription position, showcasing its prominence in the market. It ranks as the youngest company in the top 5 of the Indian Pharmaceutical Market (IPM) and holds the 4th position by value in the IPM. 

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