India New Issue-Mankind Pharma sees strong demand for debut bond, bankers say

Mankind Pharma

15/10/2024 12:14

(Updates with details throughout)
    By Dharamraj Dhutia and Bhakti Tambe
       MUMBAI, Oct 15 (Reuters) - Indian mutual funds were
large buyers for a maiden bond issue from Mankind Pharma
 MNKI.NS , three bankers, including one directly involved in the
deal, said on Tuesday.
    Mankind Pharma raised an aggregate of 50 billion rupees
($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. 
   

    ($1 = 84.0070 Indian rupees)

 (Reporting by Dharamraj Dhutia and Bhakti Tambe
Editing by Sumana Nandy and Sonia Cheema)
 ((Dharamraj.dhutia@tr.com))