Sun Pharma To Raise ₹10,000 Crore To Part-Fund $11.75 Billion Organon Deal; Shares In Focus Today

Sun Pharmaceutical Industries is set to raise ₹10,000 crore through rupee-denominated bonds as the drugmaker refinances part of the bridge financing used for its $11.75 billion acquisition of US healthcare company Organon, its biggest acquisition to date.

The fundraising is expected to be split into two tranches. A ₹7,000-crore tranche will carry an annual coupon of 8.20%, while another ₹3,000-crore tranche will carry an 8.05% coupon and include a put option in 2028, The Economic Times reported, citing people aware of the development. The bonds are scheduled to mature in 2031.

Reuters had separately reported that Sun Pharma was looking to raise around ₹10,000 crore, or about $1.05 billion, through rupee bonds to partly refinance dollar bridge financing used for the Organon transaction.

The latest financing details come after Sun Pharma’s board on October 12 approved raising up to ₹10,000 crore through listed, rated, unsecured and redeemable non-convertible debentures on a private-placement basis. The company’s filing at the time did not disclose the final coupon rates, individual tranche sizes or link the proceeds specifically to the Organon acquisition.

The fundraising puts the financing of the drug maker’s $11.75 billion Organon purchase back in focus as the Indian drugmaker works towards completing a transaction that will significantly expand its global presence in women’s health, biosimilars and established medicines.

Sun Pharma Organon Deal

Sun Pharma signed a definitive agreement in April to acquire New York-listed Organon in an all-cash transaction carrying an enterprise value of $11.75 billion.

Organon, which was spun off from Merck in 2021, has a portfolio spanning women’s health, biosimilars and established medicines.

The company generated revenue of around $6.2 billion in calendar year 2025 and adjusted operating profit of about $2 billion, according to a CRISIL report cited by The Economic Times.

For Sun Pharma, the acquisition adds Organon’s women’s health and biosimilars businesses to its existing speciality and generic pharmaceutical portfolio and substantially increases the scale of its global operations.

Organon shareholders approved the proposed acquisition in July.

Sun Pharma ₹10,000 Crore Bond Issue Details

Sun Pharma’s board on October 12 approved the issuance of up to ₹10,000 crore of non-convertible debentures (NCDs) through one or more tranches or series.

The securities will be listed, rated, unsecured and redeemable and issued through private placement.

According to the latest reported terms, ₹7,000 crore will be raised at an annual coupon of 8.20%, while ₹3,000 crore will carry an annual coupon of 8.05%. Both bonds mature in 2031, while the ₹3,000-crore tranche includes a put option in 2028.

The put option gives investors the right to seek early redemption in accordance with the terms of the issue.

The longer-term bond financing is expected to replace part of the shorter-term bridge financing arranged for the Organon acquisition.

Sun Pharma’s October 12 exchange filing did not specify the final coupon rates, tranche sizes or use of proceeds. The board authorised its Finance Committee to determine tranche-specific terms within the approved ₹10,000-crore limit.

The company subsequently disclosed that CRISIL had assigned a CRISIL AAA/Stable rating to the proposed non-convertible debentures.

Sun Pharma shares closed at ₹1,743 on October 19, down 0.90% for the session. Indian equity markets were closed on October 20 for Dussehra.

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