Another mega deal in the Indian Pharma space
Just a year-old baby on the listed markets, Mankind is going for a big one. It has emerged as the highest bidder to acquire Bharat Serums & Vaccines (BSV) for Rs 14k crore.
Known to grow by acquiring companies, this one is a big shot from Mankind.
And the good thing is that it has the money pipes in place to fund it.
- It has Rs 3.3k crore in cash, with almost no debt
- Its board has also approved an equity raise of another Rs 7.5k crore
- Plus, it already has a nod in place to raise as much as Rs 12.5k crore in debt, just in case it finds some big acquisition opportunity (like it did with BSV)
Meanwhile, coming to BSV
The company seems to have grown sizeably under the watch of PE giant Advent
Advent bought a 74% majority in 2019 for Rs 3.5k crore, valuing the company at <1/3rd of the present valuation
And then the remaining stake in 2022, fully doubling down.
BSV is into varied pharma products.
However, it gets most of its revenue from fertility-boosting drugs for women
That’s an area which as a whole has been very hot among private equity giants in the last year and a half.
Thus, this deal by Mankind adds even more allure to the wider segment.
