Mankind Pharma shares extend gain on CCI nod for BSV acquisition

Shares of Mankind Pharma continued its gaining streak for the second straight session on Thursday, after falling in the previous four sessions, as sentiments were lifted after the homegrown pharma company received regulatory approvals for acquisition of Bharat Serums and Vaccines Ltd. (BSV). The Competition Commission of India has cleared Mankind Pharma's proposed acquisition of 100% stake in Bharat Serums and Vaccines for ₹13,630 crore.

Cheering the news, Mankind Pharma shares rose as much as 1.5% to ₹2,615, while the market capitalisation climbed to ₹1.04 lakh crore. The stock opened a tad higher at ₹2,578 after ending 2.19% up at ₹2,576.75 on October 1. The pharma stock touched its 52-week high of ₹2,780 on September 24, 2024, and a 52-week low of ₹1,685 on November 1, 2023. In the last one year, the largecap stock has risen 44%, while it added 31% in the calendar year 2024 and 10% in the past six months.

In July this year, Mankind Pharma had executed a share purchase agreement with private equity firm Advent International for acquisition of complete stake in BSV for around ₹13,630 crore. As part of the deal, the company signed an agreement with Ansamira Limited and Miransa Limited (affiliates of funds managed by Advent International), BSV, and certain minority shareholders - Bhaskar Iyer and Abhijit Mukherjee.

“The company notified the stock exchanges vide its announcement dated July 25, 2024 in relation to the execution of the Share Purchase Agreement dated July 25, 2024 amongst the Company, Bharat Serums and Vaccines Limited (BSV) and the sellers i.e. Ansamira Limited and Miransa Limited, (affiliates of funds managed by Advent International), and (b) Share Purchase Agreement dated July 25, 2024 amongst Company, BSV and certain minority shareholders i.e. Bhaskar Iyer and Abhijit Mukherjee (collectively referred as “Share Purchase Agreements”) for proposed acquisition of 100% stake in BSV,” it said in a BSE filing on October 2.

“The proposed transaction is subject to completion of remaining customary conditions precedent as contemplated in the share purchase agreements,” the release noted.

Earlier this week, Mankind Pharma’s board approved a fundraising plan of up to ₹10,000 crore and the transfer of its Over-the-Counter (OTC) business undertaking to its wholly owned subsidiary, Mankind Consumer Products (MCPPL).

The Delhi-based pharma company plans to raise up to ₹10,000 crore via issuance of non-convertible debentures and commercial papers.  It will issue 5 lakh rupee-denominated secured, rated and listed NCDs with a nominal value of ₹1 lakh each totalling ₹5,000 crore. The company will also issue listed and rated commercial paper having a face value worth ₹5,000 crore.

Besides, the company has executed a business transfer agreement (BTA) to transfer its Over-the-Counter (OTC) business undertaking to MCPPL on a slump sale basis. Mankind Pharma’s consumer products portfolio includes several trusted brands Manforce, HealthOK, Prega News, AcneStar, Unwanted and Gas-O-Fast across categories such as wellness, hygiene, and personal care products. The move is part of Mankind Pharma’s broader strategy to enhance its focus on the consumer business, which currently contributes 7% to the company's overall revenue.

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