Mankind Pharma Launches INR 3,000 Cr QIP to Fund Bharat Serums Acquisition

In its regulatory filing, the company confirmed that the funds raised from the QIP would partly fund its proposed acquisition of Bharat Serums and Vaccines, which was first announced in July 2024.

Mankind Pharma has initiated a qualified institutional placement (QIP) to raise up to INR 3,000 Cr, a portion of which will finance its INR 13,630 Cr acquisition of Bharat Serums and Vaccines (BSV), announced in July 2024.

The QIP, launched on December 16, 2024, has set a floor price of INR 2,616.55 per share, in line with the SEBI pricing formula.

Mankind Pharma has also retained the option to offer a discount of up to 5% on the floor price to qualified institutional buyers (QIBs).

In its regulatory filing, the company confirmed that the funds raised from the QIP would partly fund its proposed acquisition of Bharat Serums and Vaccines, which was first announced in July 2024.

On the day of the QIP announcement, Mankind Pharma’s shares gained 1.7% to close at INR 2,686 on the NSE. Over the past year, the stock has surged nearly 40%, bringing the company’s market capitalization to INR 1.08 Lakh Cr.

The QIP was preceded by a report from Moneycontrol, which had disclosed Mankind Pharma’s plans to launch the INR 3,000 Cr QIP to finance the acquisition.

Advent International's Exit

Private equity firm Advent International, which acquired a 74% stake in BSV in February 2020, providing a complete exit to previous investors OrbiMed Asia and Kotak PE and a partial exit to the Daftary family, was looking to exit BSV.

Following approval from the Department of Pharmaceuticals (DoP), Advent acquired the remaining 26% stake from the Daftary family in 2023-24.

Earlier, DHN reported that Mankind Pharma along with Private Equity firms including TPG, Blackstone, and EQT, along with a consortium of Warburg Pincus and ChrysCapital had joined the fray to acquire BSV Group.

Mankind Pharma's acquisition of BSV is set to enhance its diagnostic capabilities and service offerings. The acquisition will also see more than 2,500 BSV employees joining Mankind Pharma.

BSV was established in 1971 by Vinod Daftary, who initially opened a blood bank and later launched an injectable for expecting mothers. Over the years, the company expanded by exporting polyclonal sera and setting up a manufacturing plant in Thane.

Bharat Serums and Vaccines reported revenues of INR 1,723 Cr in FY24, reflecting a robust 20% year-on-year growth with adjusted EBITDA margins of 28%.

BSV now operates US FDA and EU-approved facilities in Germany and has a presence in the Philippines through a wholly-owned subsidiary.

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