Ahmedabad: Torrent Pharmaceuticals Ltd. is moving forward with its plan to raise funds in what is set to be India’s largest bond issue so far this year, after receiving Competition Commission of India (CCI) approval for its acquisition of JB Chemicals & Pharmaceuticals Ltd., Reuters reported, citing bankers familiar with the matter.
The Ahmedabad-based drugmaker plans to sell multiple tenor bonds worth up to ₹14,000 crore, with maturities ranging from 15 months to 42 months, sources said. The company aims to close the bond sale before mid-December 2025, making it the largest rated fund-raising exercise in the financial year 2025–26 to date.
Acquisition and market impact
The bond issue follows CCI approval for Torrent Pharma’s acquisition of JB Chemicals & Pharmaceuticals, which will boost the company’s market ranking in India from seventh to fifth largest in terms of market share, according to India Ratings & Research.
The bond issue has been rated AA, reflecting confidence in Torrent Pharma’s strengthened position post-acquisition. Bankers noted that the bond sale is part of a growing trend of domestic acquisitions being financed via Indian bond markets, rather than relying solely on foreign lenders and credit funds.
RBI’s regulatory changes
Earlier this month, the Reserve Bank of India (RBI) permitted Indian banks to fund acquisitions more freely. The new guidelines allow unfettered lending against listed debt securities and increase the limit for lending against equity from ₹20 lakh to ₹2 crore. These regulatory changes are expected to facilitate domestic financing for large corporate deals, such as Torrent Pharma’s acquisition of JB Chemicals.
Bond arrangers and market outlook
Global lenders Barclays and Standard Chartered Bank are among the foreign banks acting as arrangers for the bond issue. While Torrent Pharma and the lenders did not respond to media queries, industry insiders expect the successful closure of the bond sale to set a benchmark for future domestic funding of acquisitions.
This move underlines Torrent Pharma’s ambition to strengthen its footprint in the Indian pharmaceutical market and take advantage of favourable regulatory changes in domestic finance. Analysts suggest that the company’s expanded market share and strategic acquisitions could support long-term growth and bolster investor confidence in its rated debt instruments.