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Torrent Pharma eyes India's biggest bond issue of FY26 to fund JB Chemicals acquisition
Torrent Pharma's acquisition of JB Chemicals will make it India's fifth largest drugmaker from seventh at present, according to India Ratings.
Torrent Pharmaceuticals Ltd. is said to proceed with its plan to raise funds in India's biggest bond issue so far this year, after the Competition Commission of India approved its acquisition of JB Chemicals & Pharmaceuticals Ltd. last week, Reuters reported citing bankers aware of the matter.
The Ahmedabad-based drugmaker is expected to sell multiple tenor bonds worth as much as ₹14,000 crore of maturity between 15 months and 42 months, the bankers said. The bond issue is likely before the end of 2025.
Earlier this month, the Reserve Bank of India allowed Indian banks to fund acquisitions—a segment so far cornered by foreign lenders and credit funds. The RBI permitted unfettered bank lending against listed debt securities and raised the limit for lending against equity from ₹20 lakh to ₹2 crore.
Torrent Pharma is likely to fast-track its bond issue now that approvals are in place and the company will look to close the sale before mid-December, one of the bankers said. It will be the largest rated issue of funds in FY26 so far and extends a trend of acquisitions being funded via domestic bond issues.
The bond issue has been rated AA by India Ratings & Research, which expects the merger to improve Torrent Pharma's ranking in the Indian pharmaceutical market from the seventh to the fifth largest in terms of market share.
Barclays and Standard Chartered Bank are among the foreign banks that will act as arrangers for the bond sale.
None of the lenders replied to a Reuters email seeking comment. Torrent Pharma did not reply to a Reuters email seeking comment, while the bankers requested anonymity as they are not authorised to speak to media.
