Mankind Pharma Eyes Strategic Partnership With PE Firms For Bharat Serums Acquisition!

According to sources, the Delhi-based pharmaceuticals company is reportedly in talks with several international private equity firms to form a joint bid. Prominent PE firms with significant operations in India, including Bain Capital, Blackstone Inc, KKR, Permira & others have shown interest in acquiring BSV and submitted their non-binding bids in the previous month. Although Mankind Pharma is in discussions with private equity firms, not all are seeking a partnership. For example, according to some sources, Blackstone is reported to have submitted two separate bids and is not interested in a collaboration. Moreover, Mankind Pharma did not respond to an email requesting a comment, and Blackstone declined to comment.

Advent International is looking to sell for over $2 billion, but sources suggest that the deal will probably fall between $1.5 billion and $1.8 billion. Meanwhile, Mankind Pharma, which is India's fourth-largest drug manufacturer by sales, plans to raise up to ₹7,500 crore through a qualified institutional placement and has raised its borrowing limit to ₹12,500 crore.In the previous month, during its earnings call to discuss FY24 results and in the postal ballot notice seeking shareholder approval for the fund raise, the company mentioned it was gearing up for possible acquisitions of various sizes and was preparing a financial reserve. It described reports of its potential interest as “speculative” in Bharat Serums.

Some of the sources indicated that the company is gathering sufficient financial resources to potentially finance the acquisition in an independent manner. Although it is probable that they will seek assistance from another investor to prevent overextending their balance sheet. Additionally, these funds will be necessary for organic growth.