Mankind Pharma pledges 39.68% stake in Bharat Serums to secure ₹5,000 crore NCDs

Stocks to watch: Mankind Pharma Limited has pledged 39.68 per cent of its equity stake in its fully-owned subsidiary Bharat Serums and Vaccines Limited (BSV) to secure non-convertible debentures (NCDs) totalling ₹5,000 crores. This decision comes under SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015, with Catalyst Trusteeship Limited assigned as the common security trustee for these NCDs.

Mankind Pharma’s share price closed in green, up 2.68 per cent, at ₹2,600.00 on November 15 on BSE. The company enjoys a market capitalisation of ₹1,04,167.48 crore, as per BSE. Mankind Pharma’s stock price reached its 52-week high of ₹2,874.00 on November 6, 2024, as per NSE.

Mankind Pharma, in an exchange filing, announced, “This is to inform you that as per the terms and conditions of 3 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 3 Series, 39.68 per cent equity shares of Bharat Serums and Vaccines Limited.”

The pledge agreement, finalized on November 14, 2024, includes three series of debentures issued through debenture trust deeds signed on October 10, 2024, between Mankind Pharma and Catalyst Trusteeship. The pledged shares of BSV will serve as collateral until all debenture obligations are met, assuring security for debenture holders

Bharat Serums and Vaccines became a wholly-owned subsidiary of Mankind Pharma as recently as October 23, 2024. Mankind’s disclosure noted that this transaction does not constitute a sale or disposal of shares and is, therefore, not a related-party transaction. The pledged shares will remain under the security agreement until the NCD obligations are completed. The transaction is structured to support Mankind Pharma’s financing while maintaining alignment with regulatory standards.

This substantial pledge illustrates Mankind Pharma’s commitment to fulfilling its financial strategies and investor obligations, leveraging its assets to secure crucial debt funding. The company’s capital move is expected to offer robust backing for its expansion plans, emphasizing the strategic significance of BSV within its portfolio.