Mankind Pharma Secures ₹3,000 Crore via QIP for Growth

20 Dec 2024 , 02:06 PM

Mankind Pharma Ltd has also announced its plans to raise ₹3,000 crores through Qualified Institutions Placement (QIP) of equity shares that would take it to the next level of growth.

In a meeting held on December 20, 2024, the Fund Raising Committee of the company had approved the issue of 1.19 crore equity shares to Qualified Institutional Buyers. The issue price includes a premium of ₹2,519 per share, aggregating a total of ₹2,999.99 crore. Consequently, the total proceeds under QIP reached an outstanding sum of ₹2,999.99 crore.

Thus, through this move, the company has expanded its paid-up equity share capital from ₹40.6 crore to ₹41.25 crore. This round has also seen a single entity take 9,92,064 equity shares, amounting to a total of 8.33% of the equity allotted. This single entity, Government Pension Fund Global was thus found as the biggest investor in the round.

The company intends to utilize the fund raised to partially settle a part of the debt resulting from the acquisition of Bharat Serums and Vaccines, which happens to be a leader in biologics and vaccines. The acquisition is completed in July for ₹13,630 crore.

Net profit for Mankind Pharma, for the quarter ending September 30, 2024, is ₹653.5 crore, 30.4% higher than ₹501 crore in the comparable period of the previous year.

Revenue from operations was up 13.6% year-over-year to ₹3,076.5 crore, which indicated business momentum. EBITDA was at the operational level that rose 24.5% to ₹850 crore from ₹682.6 crore in the same quarter of FY24.