Jubilant Pharmova plans to raise $150 million through a rupee bond sale, two merchant bankers said on Friday. The company wants to use these funds for capital expenditure and to refinance project-related liabilities. They could tap the debt market before the end of next month to support their growing business.
Jubilant Pharmova is set to raise funds through a rupee bond offering, primarily to invest in capital expenditure, two merchant bankers said on Friday.
The company is engaged in specialty pharmaceuticals, contract development and manufacturing, generics, drug discovery and proprietary novel drug businesses. It plans to raise around ₹1,400 crore (around $150 million) through the sale of three-year bonds with bullet maturity, the bankers added.
They requested anonymity as they are not authorised to speak to media, while the company did not reply to a Reuters email seeking comment.
The notes are rated AA+ by India Ratings, and the company could tap the debt market before the end of next month.
The rating agency expects the business profile of the firm to strengthen further over the medium term, supported by increasing contribution from recently commissioned capacities.
Jubilant made capital expenditure of ₹1,450 crore in the last financial year and plans to use the proceeds from the planned debt issuance on capex and to refinance project-related liabilities at overseas subsidiaries.
The funds would go towards its operating entities in North America, India Ratings noted.