Sun Pharma Board To Consider ₹15,000 Crore NCD Issue On October 12
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Sun Pharma is evaluating a large debt fundraising programme through listed, rated and unsecured debentures. The proposal will go before the company's board on October 12, with the final terms yet to be announced.
Sun Pharmaceutical Industries' board will meet on Monday, October 12, to consider raising up to ₹15,000 crore through non-convertible debentures (NCDs) on a private placement basis. The proposed fundraising could be carried out in one or more tranches through listed, rated, unsecured and redeemable NCDs, subject to approval from the company's board.
The ₹15,000 crore proposal was disclosed after market hours on Wednesday, October 7. Sun Pharma shares had closed 1.28% lower at ₹1,781 on the NSE, compared with the previous close of ₹1,804.10, meaning Wednesday's share-price movement preceded the fundraising announcement.
The October 12 board meeting will determine whether Sun Pharma proceeds with the proposed NCD issue. At this stage, the company has disclosed the maximum fundraising amount and proposed route, but details including the final amount to be raised, number of tranches, interest rate, tenure and other terms of the NCDs have not been announced.
Sun Pharma ₹15,000 Crore NCD Issue
Sun Pharma informed the stock exchanges that its board will consider a proposal to raise funds through the issuance of non-convertible debentures at its meeting scheduled for October 12.
The proposed NCDs would be listed, rated, unsecured and redeemable, and may be issued in one or more tranches through private placement.
The aggregate amount under consideration is up to ₹15,000 crore.
The proposal remains subject to approval by Sun Pharma's board. Further details on the fundraising are expected after the October 12 meeting if the proposal is approved.
The company made the disclosure under Regulation 29 of the SEBI Listing Obligations and Disclosure Requirements Regulations.
Sun Pharma Share Price
Sun Pharma shares closed at ₹1,781 on the NSE on Wednesday, October 7, down ₹23.10 or 1.28% from the previous close of ₹1,804.10.
The stock opened at ₹1,797 and traded between ₹1,772 and ₹1,804 during Wednesday's session.
Since Sun Pharma announced the proposed ₹15,000 crore NCD fundraising after market hours, Wednesday's decline should not be attributed to the announcement.
The company's board meeting on October 12 will now be tracked for a decision on the proposed debt fundraising and any further details on its structure and terms.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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