Mankind Pharma pledges additional stake in Bharat Serums and Vaccines to secure NCDs

Mankind Pharma has pledged an additional 56.31% of its equity shares in Bharat Serums and Vaccines Ltd (BSV), its wholly owned subsidiary, to Catalyst Trusteeship Ltd as part of the terms for securing its listed non-convertible debentures (NCDs).

“…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, remaining 56.31% equity shares of Bharat Serums and Vaccines Limited, wholly owned subsidiary of the Company (“BSV”) have also been pledged in favour of Catalyst Trusteeship Limited as the Common Security Trustee for the benefit of the holders of the NCDs,” the pharma major said in a filing with the stock exchanges on Tuesday, January 7.

The move relates to three debenture trust deeds executed on October 10, 2024, between Catalyst Trusteeship and Mankind Pharma. These agreements cover the issuance of listed, rated, secured, redeemable, and transferable NCDs aggregating to ₹5,000 crore, issued in three series.

Catalyst Trusteeship Ltd acts as the Common Security Trustee for the benefit of the NCD holders.

The pledge of the remaining 56.31% equity shares in BSV ensures additional security for the NCDs. This follows Mankind Pharma’s prior commitment to leverage its stake in BSV, a leading player in the biopharma space known for its focus on critical care, women’s health, and vaccines.

Shares of Mankind Pharma settled more than a percent higher on the BSE, quoting at ₹2,918.55 apiece. The one-year return on the stock is nearly 46%.