Sun Pharmaceutical Industries accepted ₹78.16 billion in bids for two bond tranches Thursday, Oct. 22, below the ₹100 billion fundraising goal three merchant bankers told Reuters the company had set.
The accepted bids comprised ₹20.03 billion and ₹58.13 billion in the two tranches, Reuters reported. The bonds carried annual coupons of 8.05% and 8.20%, according to the report.
Sun Pharma’s board approved a separate issuance ceiling of up to ₹100 billion on Oct. 12, according to its filing, which authorized nonconvertible debentures through private placements. EconoTimes previously reported on the board authorization.
Three merchant bankers told Reuters investors sought higher yields. Jiraaf co-founder Saurav Ghosh told Reuters India’s 10-year government bond yield had crossed 7.4%, narrowing the gap with AAA-rated corporate bonds. Ghosh said the coupons offered investors limited extra return for taking on corporate credit risk as rates rose.
Reuters reported that some proceeds would help fund a bridge loan Sun took to acquire Organon & Co. Sun and Organon announced an all-cash deal in April, valuing the acquisition at $11.75 billion in enterprise value. Sun said it expected the deal to close in early 2027, subject to regulatory approval; Organon shareholders approved the proposal in July, as EconoTimes previously reported.
