Mankind Pharma Approves Share Sale Worth Rs 3,000 Crore To Institutions To Pare Debt
Mankind Pharma aims to become a debt-free company within the next three years, top executive told NDTV Profit earlier.
Indian pharmaceutical giant Mankind Pharma Ltd. approved raising Rs 3,000 crore via qualified institutional placements in an effort to pare off its debt.
The company's board approved and authorised the opening date of the issue as December Dec. 16. The equity shares issued will have a face value of Re 1 each, the company said in an exchange filing on Monday.
The floor price of Rs 2,616.5. is set at a discount of 0.9% from Monday's closing price on the BSE. The company may, at its discretion, offer a discount of no more than 5% on the floor price for the QIP, the exchange filing said.
The pharma giant's board on May 15 had approved Rs 7,500 crore fundraising via qualified institutional placement or through any other securities. The company received approval from shareholders for the share sale to institutions on June 17.
Further, the company's board on Sept. 30 approved raising up to Rs 10,000 crore through non-convertible debentures and commercial papers.
Mankind Pharma aims to become a debt-free company within the next three years. While Mankind Pharma is currently sitting on a debt of Rs 10,000 crore, Vice Chairman and Managing Director Rajeev Juneja expects to clear all its existing debts in three years through various measures.
“In the next few weeks, hopefully in the middle of December, a Rs 3,000-crore QIP will happen. Plus, we have some non-core assets to the tune of Rs 500 crore to Rs 600 crore. They will be sold off and the money will go for the debt repayment,” he said earlier.
Mankind Pharma's consolidated net profit increased 29% in the quarter ended Sept. 30, beating analysts' estimates. The company posted a net profit of Rs 658.88 crore in the July-September period, as compared to Rs 473 crore in the year-ago period.
The stock has risen 39% during the last 12 months and has advanced by 35% on a year-to-date basis.
Twelve out of the 16 analysts tracking the company have a 'buy' rating on the stock, three suggest a 'hold' and one has a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 4.6%.
