The board of Mankind Pharma at its meeting held on 11 July 2026 has approved the divestment of its 100% stake in Broadway Hospitality Services, a wholly owned subsidiary company. According to latest reports, the company has approved the sale of its entire stake in Broadway Hospitality Services Private Limited for a total consideration of ₹49.00 crore to AKRK Projects LLP and Partners. The transaction is structured as a clean exit from the non-core hospitality business and is expected to be completed within 90 days. The buyers are not part of the promoter group, and the transaction does not fall within related party transactions.
As of March 31, 2026, Broadway Hospitality Services reported a turnover of ₹9.63 crore and a net worth of ₹38.99 crore, contributing marginally to Mankind Pharma's overall financials. The subsidiary's financial contribution breakdown shows: Turnover/Revenue: ₹9.63 crore (0.07% contribution) and Total Income: ₹9.90 crore (0.07% contribution). The divestment represents a significant strategic move to exit non-core assets and streamline the company's portfolio of subsidiary companies.
The divestment of Broadway Hospitality Services represents a strategic move by Mankind Pharma to exit non-core assets as part of its broader strategy to focus on core pharmaceutical operations. The company is simultaneously establishing a new Special Purpose Vehicle (SPV) in the Netherlands with a proposed investment of up to Euro 5 million to support R&D assets and niche therapy business development activities. This move signals a sharper strategic shift toward innovation-led growth and international structuring, potentially strengthening Mankind Pharma's capabilities in specialized treatments and enhancing its competitiveness in high-value segments.
The newly approved Netherlands subsidiary will serve as a Special Purpose Vehicle (SPV) specifically designed to hold investments in research and development assets and business development activities focused on treatment of niche therapies. The proposed investment of up to Euro 5 million will be infused in one or more tranches, subject to approvals under the Foreign Exchange Management Act and relevant regulations from the Reserve Bank of India and authorities in the Netherlands. This structure allows Mankind Pharma to maintain strategic control over its research and development investments while creating a separate entity for focused business development activities in the specialized therapy market.
