Mankind Pharma to Raise ₹5,000 Crore Via Non-Convertible Debentures and Commercial Papers

Mankind Pharma will issue non-convertible debentures (NCDs) and commercial papers (CP) worth ₹5,000 crore. These funds will support acquisitions and long-term growth. NCDs will be in various series, secured by company assets, while CPs will have tenures between 3 to 12 months.

Mankind Pharma Limited's Fund Raising Committee has unveiled a strategic plan to issue non-convertible debentures (NCDs) and commercial papers (CP) amounting to ₹5,000 crore. This announcement was made via a stock exchange filing on Monday, detailing the issuance of up to 500,000 secured, rated, and listed NCDs each valued at ₹100,000, summing to a total of ₹5,000 crore.

These NCDs will be offered in three to four different series with maturities extending up to 48 months. They will be listed on the Bombay Stock Exchange (BSE), providing investors with a reliable investment opportunity. The NCDs will feature exclusive and pari-passu charges over various assets of the company, including designated accounts, movable and immovable assets, and shares and securities of Bharat Serums and Vaccines Limited, which Mankind Pharma is in the process of acquiring.

Details on the coupon rate, interest payments, and specific allotment dates will be disclosed closer to the issuance date. Moreover, Mankind Pharma plans to raise additional funds through listed and rated commercial papers (CP) in one or more tranches. The total CP issuance will not surpass ₹5,000 crore, with tenures ranging between 3 to 12 months. The specific terms regarding coupon rates and allotment will also be revealed closer to the date of issuance. These fundraising initiatives are aimed at optimizing Mankind Pharma's balance sheet, gathering capital for upcoming acquisitions, and supporting long-term business expansion.

(With inputs from agencies.)