Mankind Pharma’s Fund Raising Committee has approved the issuance of up to INR 5,000 crore in non-convertible debentures (NCDs) and an additional INR 5,000 crore via commercial papers (CPs) as part of its strategic fundraising plans. This approval was made on September 30, 2024, aiming to secure funds through these instruments, both of which will be listed on the BSE.
Details of the NCDs Issuance
- Total Issuance: Up to 500,000 secured, rated, and listed NCDs, each valued at INR 100,000, aggregating to a total of INR 5,000 crore.
- Series: These NCDs will be issued across 3-4 different series with maturities up to 48 months.
- Listing: The NCDs will be listed on BSE Limited.
- Tenure: The date of allotment and final maturity will be specified at the time of issuance.
- Interest/Coupon Rate: The coupon or interest rate will be set later, with semi-annual payments of both interest and principal.
- Security and Charge:
- Exclusive charge over Mankind Pharma’s designated accounts and the collection account where NCD proceeds will be held.
- Pari-passu charge over movable assets, such as company brands and investments in subsidiaries.
- Pari-passu mortgage over specific immovable assets.
- Once the acquisition is completed, the NCDs will also be secured by an exclusive pledge of shares and securities of Bharat Serums and Vaccines Limited.
Details of Commercial Papers (CPs)
- Issuance Structure: The CPs will be listed and rated, with the face value set according to applicable legal requirements.
- Aggregate Financing: The total issuance of CPs will not exceed INR 5,000 crore, offered in one or more tranches.
Purpose of Fundraising
The funds raised through both NCDs and CPs will be used for a variety of corporate needs, such as financing acquisitions and general business purposes. Mankind Pharma has included detailed disclosures for both instruments in their official communication to regulatory authorities.
Disclaimer: This information is for informational purposes only and does not constitute financial or investment advice. Market investments carry risks, and readers are encouraged to conduct their own research or consult a financial advisor before making investment decisions. Neither the author nor any associated publication is liable for losses resulting from the use of this information.
