Mankind Pharma secures Rs 50 billion funding for Bharat Serums acquisition
In July, Mankind said it would acquire BSV for an enterprise value of around 136.30 billion rupees, with the majority of the deal being funded via debt
Mumbai: Indian mutual funds were large buyers for a maiden bond issue from Mankind Pharma , three bankers, including one directly involved in the deal, said on Tuesday.
Mankind Pharma raised an aggregate of 50 billion rupees (USD 595.2 million) by selling bonds maturing in 18 months, two years, and in three years and one month.
The company will use the funds for the acquisition of Bharat Serums and Vaccines, the bankers said.
The bonds are rated 'AA+' by rating agencies.
In July, Mankind Pharma said it would acquire Bharat Serums and Vaccines for an enterprise value of around 136.30 billion rupees, with the majority of the deal being funded through debt.
ICICI Prudential Life Insurance, HDFC Life Insurance, SBI Life Insurance, SBI Asset Management, ICICI Asset Management, UTI Asset Management, HDFC Asset Management, Aditya Birla Sun Life Mutual Fund and Axis Asset Management were among the anchor investors, the bankers said.
Mankind Pharma and these companies did not respond to Reuters' request for comments.
"Selective high-quality corporate debentures, rated 'AA' and above, are in strong demand," said Venkatakrishnan Srinivasan, founder and managing partner at debt advisory firm Rockfort Fincap.
Mankind Pharma will pay a coupon of 7.99% each on the shorter duration papers and 7.97% on the above three-year bonds. The coupons will be payable on a semi-annual basis.
Deutsche Bank and Barclays were the arrangers for the bond issue. They did not reply to an email seeking comment.
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