Jubilant Pharmova Ltd has approved the issuance of non-convertible debentures (NCDs) worth up to ₹800 crore through a private placement, the company announced on Monday. The board sanctioned up to 80,000 fully paid-up NCDs with a face value of ₹1,00,000 each, which will be listed on the BSE. The debentures will have a tenure of up to five years from the deemed allotment date, with the interest rate to be decided during the bidding process, according to the regulatory filing.
The board's approval includes issuing secured or unsecured, rated, redeemable, and transferable NCDs in one or more tranches, subject to applicable laws and regulatory approvals. Additionally, Jubilant Pharmova's board has approved seeking shareholders' authorization through a special resolution via postal ballot to issue non-convertible debt securities on a private placement basis. This authorization will allow an aggregate outstanding amount not exceeding ₹2,500 crore at any time within one year from the resolution date, as per the company statement.
This move by Jubilant Pharmova reflects a strategic approach to raising capital through debt instruments amid a growing trend of private placements in the Indian pharmaceutical sector. The listing of these NCDs on the BSE provides liquidity options for investors. Comparable issuances in the industry have been used to fund expansion and operational needs without diluting equity, positioning the company to manage its financial structure effectively while accessing capital markets.
The coupon rate for the NCDs will be finalized during the bidding process, and the debentures will carry a maximum tenure of five years from the deemed allotment date. The shareholder postal ballot for the special resolution is expected to take place shortly, enabling the company to proceed with the issuance under the approved limits.