Mankind Pharma Plans to Raise Rs 5,000 Crore Through Debentures and Commercial Papers
Mankind Pharma Limited has announced a comprehensive plan to raise Rs 5,000 crore by issuing non-convertible debentures (NCDs) and commercial papers (CP). The company will issue up to 500,000 secured, rated, and listed NCDs, each with a nominal value of Rs 100,000, in 3-4 series with maturities up to 48 months. These NCDs will be listed on the Bombay Stock Exchange (BSE), providing a secure investment option for investors.
The NCDs will have exclusive and pari-passu charges over various assets of the company, including designated accounts, movable and immovable assets, and a pledge over shares and securities of Bharat Serums and Vaccines Limited, which Mankind Pharma is set to acquire. Details on the coupon rate, interest payments, and specific allotment dates will be disclosed at the time of issuance.
In addition to the NCDs, Mankind Pharma will also raise funds through listed and rated Commercial Papers (CP) in one or more tranches, with a total financing amount not exceeding Rs 5,000 crore. The CPs will have tenures ranging between 3 to 12 months, with specific terms regarding coupon rates and allotment to be revealed closer to the issuance date.
The company emphasized that these fundraising efforts are part of a broader financial plan aimed at optimizing its balance sheet, securing necessary capital for upcoming acquisitions, and supporting long-term business growth.
Doubts Revealed
Mankind Pharma -: Mankind Pharma is a big company in India that makes medicines and healthcare products.
Rs 5,000 Crore -: Rs 5,000 Crore is a very large amount of money. One crore is equal to 10 million, so 5,000 crore is 50 billion rupees.
Debentures -: Debentures are a type of loan that companies take from people. The company promises to pay back the money with interest after a certain time.
Commercial Papers -: Commercial Papers are short-term loans that companies take to meet their immediate financial needs. They usually have to be paid back within a year.
Non-convertible debentures (NCDs) -: Non-convertible debentures are loans that cannot be changed into company shares. They are just like regular loans with interest.
Bombay Stock Exchange -: The Bombay Stock Exchange (BSE) is a place where people can buy and sell shares of companies. It is one of the oldest stock exchanges in Asia.
Coupon rates -: Coupon rates are the interest rates that the company will pay to the people who lend them money through debentures or commercial papers.
Allotment dates -: Allotment dates are the dates when the company will give out the debentures or commercial papers to the people who have agreed to lend them money.
