Torrent Pharma eyes India's biggest bond issue of FY26 to fund JB Chemicals acquisition

By Admin

25 Oct, 2025

Torrent Pharma’s Expansion Drive
Torrent Pharmaceuticals Ltd., one of India’s leading pharmaceutical companies, is gearing up for the country’s biggest bond issue of FY26 to finance its landmark acquisition of JB Chemicals & Pharmaceuticals Ltd. Following the recent approval from the Competition Commission of India (CCI), the Ahmedabad-based drugmaker is moving swiftly to secure the necessary funds for the transaction.

Mega Bond Issue Details
According to Reuters, Torrent Pharma plans to raise as much as ₹14,000 crore through multiple-tenor bonds, with maturities ranging from 15 months to 42 months. Bankers close to the development suggest that the bond issue is likely to be completed before the end of 2025, with a potential target to close the sale by mid-December this year. This will make it India’s largest rated bond issue so far in FY26, setting a strong precedent for acquisition funding through domestic bond markets.

Strategic Financial Reforms Fuel the Move
The company’s timing aligns well with recent policy changes by the Reserve Bank of India (RBI). Earlier this month, the RBI allowed Indian banks to fund acquisitions a segment previously dominated by foreign lenders and credit funds. The central bank also eased regulations by permitting unrestricted bank lending against listed debt securities and raising the limit for lending against equity from ₹20 lakh to ₹2 crore. These reforms have opened the door for Indian corporates like Torrent Pharma to tap domestic financing channels more effectively.

Market Position and Credit Rating
The acquisition of JB Chemicals is a strategic move that will propel Torrent Pharma from the seventh to the fifth largest drugmaker in India, as per India Ratings & Research. Reflecting strong confidence in the company’s financial health, India Ratings has assigned a ‘AA’ rating to the upcoming bond issue. The merger is expected to enhance Torrent’s product portfolio, strengthen its market share, and expand its footprint in both domestic and international pharmaceutical markets.

Global Banks Join as Arrangers
International financial giants Barclays and Standard Chartered Bank are among the arrangers for the high-profile bond sale, underscoring global investor interest in India’s evolving pharmaceutical landscape. Despite requests for comments, Torrent Pharma and the participating lenders have not responded to media queries.

A New Era for Indian Corporate Funding
Torrent Pharma’s bold funding plan marks a significant milestone for India’s corporate bond market, signaling growing confidence among domestic issuers to finance major acquisitions locally. As Indian banks and investors increasingly participate in such transactions, the move could reshape corporate financing trends across industries.

Conclusion
With the JB Chemicals acquisition on the horizon and the bond issue expected to be wrapped up soon, Torrent Pharmaceuticals is poised to climb higher in India’s pharmaceutical hierarchy. The combination of regulatory reforms, strategic financing, and market consolidation could make this one of the most defining deals of FY26 both for Torrent Pharma and for India’s corporate bond landscape.