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Mankind Pharma Shares Rise on QIP Launch to Fund Bharat Serums Acquisition

Updated on: Dec 17, 2024, 1:28 PM IST
Mankind Pharma shares rise 1.17% as it launches a QIP to raise ₹3,000 crore, aiming to finance its ₹13,768 crore acquisition of Bharat Serums and Vaccines.
Mankind Pharma Shares Rise on QIP Launch to Fund Bharat Serums Acquisition
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On December 17, 2024, shares of Mankind Pharma opened at ₹2,735 on the National Stock Exchange (NSE) and climbed to an intraday high of ₹2,752.65. By 10:00 AM, the stock was trading higher by 1.17%, reflecting investor optimism following the company’s recent announcement to raise ₹3,000 crore through a Qualified Institutional Placement (QIP).

The QIP, approved by the company’s board, was officially launched on December 16, 2024, with a floor price set at ₹2,616.55 per equity share.

Strategic Fundraising for Acquisition

The primary objective of this fundraiser is to finance Mankind Pharma’s acquisition of Bharat Serums and Vaccines Ltd (BSV). This acquisition, completed in October 2024, was valued at ₹13,768 crore.

By acquiring BSV, Mankind Pharma has taken a significant leap in the pharmaceutical industry. The move strengthens its position in the Indian women’s health and fertility drug market while also enhancing its capabilities in the critical care segment. Notably, BSV brings high-entry barrier products and advanced R&D platforms, giving Mankind a competitive edge in specialised segments.

Financial Performance

Mankind Pharma’s robust performance in the second quarter of FY25 further highlights its growth trajectory. For the quarter ending September 2024:

  • Net Profit: Rose 29% to ₹658.88 crore compared to ₹511.18 crore in the same period last year.
  • Revenue from Operations: Increased by 13.6%, reaching ₹3,076.51 crore against ₹2,708.10 crore a year ago.

The Road Ahead

Mankind Pharma’s strategic acquisition of BSV aligns with its vision to expand into niche pharmaceutical segments while leveraging innovative R&D platforms. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Published on: Dec 17, 2024, 1:28 PM IST

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