Torrent Pharmaceuticals is gearing up to raise approximately Rs 125 billion ($1.4 billion) through a significant bond issuance scheduled for January. The fundraising initiative is designed to finance the company's strategic acquisition of a controlling stake in JB Chemicals & Pharmaceuticals.

Key Highlights

• Torrent Pharmaceuticals plans Rs 125 billion bond sale in January to finance JB Chemicals acquisition deal.
• Bond issuance with AA+ rating could elevate Torrent from seventh to fifth in domestic pharma market.

The bond offering will feature multiple maturity periods ranging from one to five years, providing investors with various investment horizons. Additionally, the company plans to raise Rs 15 billion through commercial paper issuances. The pharmaceutical giant is currently in the process of finalizing interest rates and determining the allocation amounts across different maturity brackets before launching the issue for electronic bidding.

India Ratings and Research has assigned an AA+ rating to the proposed bond issue, reflecting the company's strong creditworthiness. The rating agency noted that this acquisition could significantly strengthen Torrent's market position, potentially elevating it from seventh to fifth place in India's domestic pharmaceutical market by market share.

Also Read: Torrent Pharma Seeks CCI Approval to Buy JB Chemicals Stake for Rs 19,500 Cr

This fundraising would mark the largest rated bond issuance in the current financial year (April 2024-March 2025). The transaction follows a growing trend among major Indian corporations to finance large acquisitions through domestic bond markets rather than traditional bank loans. Similar fundraising strategies were recently employed by JSW Group and subsidiaries of Jubilant Bhartia Group for their respective acquisition deals.

The move underscores Torrent Pharma's ambitious growth strategy and confidence in consolidating its position within India's competitive pharmaceutical sector.