Bharat Serums and Vaccines Limited (BSV), a fully-owned subsidiary of Mankind Pharma Limited, has pledged 39.68 per cent of its equity stake to secure non-convertible debentures (NCDs) worth ₹5,000 crores. As the common security trustee for these NCDs, Catalyst Trusteeship Limited was designated by SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015.
The share price of Mankind Pharma ended the day on the BSE at ₹2,600.00, up 2.68 per cent. The BSE reports that the company’s market capitalization is ₹1,04,167.48 crore. On November 6, 2024, Mankind Pharma’s stock price hit ₹2,874.00, its 52-week high, according to the NSE.
“This is to inform you that by the terms and conditions of three Debenture Trust Deeds executed on October 10, 2024, between the Catalyst Trusteeship Limited and the Company for the issuance of listed, rated, secured, redeemable, transferable non-convertible debentures aggregating to INR 5,000 crores (“NCDs”) by the Company in three Series, 39.68 per cent equity shares of Bharat Serums and Vaccines Limited,” Mankind Pharma said in an exchange filing.
Three debentures issued by debenture trust deeds signed on October 10, 2024, between Mankind Pharma and Catalyst Trusteeship, are part of the pledge agreement, concluded on November 14, 2024. Debenture holders will be guaranteed security since the pledged shares of BSV will act as collateral until all debenture obligations are fulfilled.
On October 23, 2024, Bharat Serums and Vaccines became a fully-owned subsidiary of Mankind Pharma. According to Mankind’s statement, this transaction is not a related-party transaction because it does not involve the sale or disposition of shares. Until the NCD obligations are fulfilled, the security arrangement will cover the pledged shares. The deal is set up to boost Mankind Pharma’s funding while complying with legal requirements.
This sizeable commitment demonstrates Mankind Pharma’s dedication to meeting its financial plans and investor commitments, using its assets to obtain necessary debt financing. It is anticipated that the company’s financial move will provide strong support for its expansion goals, highlighting the strategic importance of BSV in its portfolio.
