Torrent Pharma to Raise ₹110B Debt for Mega Pharma Acquisition
Overview
Torrent Pharmaceuticals is set to execute India's largest acquisition-funding debt issuance this fiscal year, planning to raise ₹110 billion across multiple bond maturities. The funds will finance its takeover of a controlling stake in JB Chemicals & Pharmaceuticals, valued at approximately ₹257 billion, signaling aggressive consolidation in the Indian pharmaceutical sector.
Torrent Pharmaceuticals is preparing to issue debt totaling ₹110 billion ($1.22 billion) to fund its significant acquisition of JB Chemicals & Pharmaceuticals. This move is poised to become the largest debt issuance for acquisition financing in the current fiscal year.
Debt Issuance Details
The pharmaceutical giant has outlined a multi-tranche bond offering designed to spread the repayment burden. The issuance includes ₹20 billion in two-year bonds, ₹25 billion in three-year notes, ₹30 billion in four-year papers, and ₹35 billion in five-year debt. Commitment bids for these issues were invited on Friday, with the company having already secured commitments from major mutual funds and pension funds acting as anchor investors.
Acquisition Rationale
The substantial debt will facilitate Torrent Pharma's acquisition of a controlling stake in JB Chemicals & Pharmaceuticals. The transaction values JB Chemicals at an equity valuation of roughly ₹257 billion on a fully diluted basis. Following the acquisition, the two entities are slated for a merger, a move expected to reshape market dynamics and operational efficiencies within the Indian pharmaceutical landscape. Torrent Pharma has not yet provided comment on the specifics of the fundraising or acquisition.
Published on January 14, 2026, this development underscores a period of significant strategic expansion for Torrent Pharmaceuticals.
