Torrent Pharma board gives nod to Rs 12,500-crore bond issue

Torrent Pharma

• Torrent Pharma to raise Rs 12,500 crore via NCDs for expansion, acquisitions
• NCDs will be secured, listed on NSE, and issued in multiple tranches
• Company reported 14 percent revenue growth and maintains low net debt-to-EBITDA

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Torrent Pharmaceuticals Ltd’s board approved raising up to Rs 12,500 crore through secured non-convertible debentures (NCDs) on a private placement basis.

The issuance will be in one or more tranches and listed on the NSE Wholesale Debt Market segment, the company said told exchanges on January 5.

The NCDs will carry a first-ranking exclusive charge over designated accounts and specified trademarks, providing a minimum security cover of 1.1x. Coupon rates, tenure, and maturity dates will be finalised at the allotment.

The move comes as Torrent seeks to maintain liquidity and fund expansion amid strong operating performance and upcoming acquisition commitments.

The company is in the final stages of completing its JB Chemicals buyout, with SEBI approval for the minimum tender offer already secured.

Torrent reported a revenue of Rs.3,302 crore in the second quarter, up 14 percent year-on-year, and operating EBITDA of Rs.1,083 crore with margins at 32.8 percent. Net debt-to-EBITDA stood at a conservative 0.45x, giving the company headroom for leverage.

Management has guided for annual capex of Rs 250–Rs.300 crore over the next three years, alongside increased R&D filings for the US and new launches in India and Brazil, including high-potential GLP-1 analogues.

With branded markets contributing 73 percent to the revenue and chronic therapies driving growth in India, Torrent is positioning for scale while preserving its investment-grade profile, it said.

The NCD issuance underscores its intent to secure long-term funding flexibility for acquisitions, capex, and pipeline investments.

At 12.30 pm, the Torrent Pharma stock was trading at Rs 3875.95, down 0.23 percent from the previous close, on BSE.