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The funds raised through the QIP are primarily earmarked for partial repayment of debt associated with the acquisition of Bharat Serums and Vaccines (BSV).
Mankind Pharma’s acquisition of BSV
Mankind Pharma acquired Bharat Serums and Vaccines (BSV), a prominent player in the biologics and vaccines space, from Advent International for an enterprise value of ₹13,630 crore in late July.
Mankind’s VC and MD, Rajeev Juneja, told CNBC-TV18 that the BSV deal will be funded with ₹4,000 crore from the company’s reserves, around ₹3,000 crore from a qualified institutional placement (QIP), and ₹7,000 crore through a loan.
“The deal size is approximately ₹14,000 crore. Of this, ₹4,000 crore would come from the company side. Around ₹3,000 crore would be via QIP, and ₹7,000 crore would be for some kind of loan. Let us hope that we just pay back this loan in the next three years’ time. That’s the kind of planning we have got right now,” he said.
At the time, brokerage firm Investec gave a ‘buy’ rating to the stock with a price target of ₹3,300 per share, factoring in strong growth due to the BSV acquisition.
Mankind Pharma reported a robust 30.4% year-on-year (YoY) growth in net profit, reaching ₹653.5 crore for the quarter ended September 30, 2024. This marks a significant increase from ₹501 crore in the corresponding period last year, the company disclosed in a regulatory filing.
The pharmaceutical giant’s revenue from operations rose by 13.6% to ₹3,076.5 crore, compared to ₹2,708.1 crore in the same quarter of the previous fiscal.
On the operational front, EBITDA witnessed a strong growth of 24.5%, climbing to ₹850 crore in Q2 FY25 from ₹682.6 crore in Q2 FY24.
Mankind Pharma IPO and share price
Shares of Mankind Pharma settled at ₹2,686.05 apiece on the NSE, rising 1.7% in trade on Monday. So far this year, the stock has gained more than 35%, while the one-year return on the stock is over 39%. Since its listing, the stock has surged more than 90%.
Mankind Pharma shares made a stellar debut, listing at ₹1,300 apiece against the issue price of ₹1,026-1,080 per share—a 20.4% premium to the issue price. It settled with more than 32% gains at ₹1,430 apiece on listing day.
The pharmaceutical and consumer health company’s over ₹4,300 crore initial public offering (IPO) opened for subscription on April 25 and concluded on April 27.
The company’s ₹4,326 crore IPO was one of the biggest issues in 2023 and the largest by a pharma company after Gland Pharma, which raised ₹6,480 crore via IPO in the year 2020.
