TorrentPharmaceuticals plans to raise up to INR 140 bn (USD 1.6 bn) through domestic bonds, Reuters reports. This comes after the Indian pharma player received approval from the country’s competition regulator to acquire a majority stake of JB Chemicals & Pharmaceuticals for USD 2.2 bn.

The AA+ rated issuance will be India’s largest corporate bond sale so far this fiscal year, extending a trend of M&A financing through local debt markets. Barclays and Standard Chartered Bank will act as arrangers. (The Economic Times)

Merger to boost market ranking: The acquisition, cleared earlier this week by the Competition Commission of India, is expected to lift Torrent’s ranking from the seventh to the fifth-largest drugmaker by market share, the newswire adds. The company plans to close the bond issue, with maturities between 15 and 42 months, by December.

Policy context: Earlier this month, RBI permitted Indian banks to finance corporate acquisitions lending momentum to the M&A pipeline, particularly in capital-intensive areas such as pharmaceuticals. This captures the regulator’s confidence in the sector’s credit discipline and robust domestic debt markets, as companies like Torrent Pharma increasingly opt for local funding over offshore borrowing. (Reuters)

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