According to The Economic Times, Jubilant Pharmova, the pharmaceutical arm of the multi-billion dollar Jubilant Bhartia Group, is raising ₹800 crore in fresh debt through its maiden bond issue in the local market. The funds include a base issue of ₹400 crore and an equal greenshoe option, representing the company's first entry into the local bond market. As reported by people familiar with the matter, this marks the first time the company is tapping the local bond market.
As reported by The Economic Times, the bonds will carry a tenure of three years and the indicative pricing for the securities is around 8.50%. The book-building and final bidding for these bonds are likely to take place later this week. The bonds are expected to be subscribed to mostly by mutual funds and asset managers, as they are likely within their maturity range.
According to The Economic Times, the funds are likely to be used for the company's capital expenditure purposes and future expansion plans. This represents a significant milestone in the company's bond market debut, with subscriptions anticipated chiefly from mutual funds and asset managers who are likely within the maturity range of these securities.
As reported by The Economic Times, this marks the first time the company is tapping the local bond market. The company's decision to raise funds through debt rather than equity reflects its strategic approach to financing growth initiatives and expansion plans in the pharmaceutical sector. The capital raised will be primarily allocated to the company's capital expenditure and upcoming expansion efforts.
