Mankind Pharma to Raise INR 9,000 Cr to Fund Acquisition of BSV

Reportedly, bankers have approached large mutual funds for debt placement, offering terms that range from one to five years.

Mankind Pharma has reportedly decided to raise over INR 9,000 Cr through non-convertible debentures (NCDs) and short-term commercial paper to finance its INR 13,630 Cr acquisition of Bharat Serums and Vaccines (BSV).

The debt's blended cost is expected to average around 8.50%, with a borrowing term between one and five years, depending on market demand, the report indicates.

Reportedly, bankers have approached large mutual funds for debt placement, offering terms that range from one to five years.

Deutsche Bank and Barclays Plc have jointly underwritten the acquisition debt and is anticipated to be priced in the coming days.

Earlier, in July, Mankind Pharma entered into a definitive agreement to acquire a 100% stake in BSV from private equity firm Advent International for an enterprise value of INR 13,630 Cr.

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.