Mankind Pharma Ltd. has pledged its remaining 56.31% stake in wholly owned subsidiary Bharat Serums and Vaccines Ltd. in favour of Catalyst Trusteeship Ltd.
This move is part of the terms outlined in three Debenture Trust Deeds executed between Mankind Pharma and Catalyst Trusteeship on Oct. 10, according to an exchange filing on Tuesday.
The pledged shares serve as collateral for the benefit of holders of the company's listed, rated, secured, redeemable, transferable non-convertible debentures, which aggregate to Rs 5,000 crore across three series.
This pledge is part of Mankind Pharma's broader strategy to manage its financial obligations.
Recently, the company also approved a Rs 3,000-crore fundraising initiative through qualified institutional placements to reduce its debt load. The QIP, which opened on Dec. 16, involves issuing equity shares with a face value of Re 1 each at a floor price of Rs 2,616.5, offering a discount of 0.9% from the closing price.
In May, Mankind Pharma's board had also approved fundraising initiatives of up to Rs 7,500 crore through QIP and Rs 10,000 crore through non-convertible debentures and commercial papers.
In July, the company had announced that it is acquiring biopharma firm Bharat Serums for Rs 13,630 crore. Mankind Pharma bought the company from the private equity firm Advent International.
Shares of Mankind Pharma closed 1.22% higher at Rs 2,919.7 apiece on the National Stock Exchange, compared to a 0.39% advance in the benchmark Nifty. The share price has risen 45.99% in the last 12 months.
Twelve out of the 16 analysts tracking the pharma company have a 'buy' rating on the stock, three recommend 'hold' and one suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 4.3%.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
