Torrent Pharmaceuticals has announced that its board of directors has approved a plan to raise up to ₹12,500 crore through the issuance of secured non-convertible debentures (NCDs). The fundraising will be carried out via private placement in one or multiple tranches and the debentures will be listed on the NSE’s Wholesale Debt Market segment.
The company disclosed the board’s decision in a regulatory filing dated January 5, 2026. The proposed capital raise is aimed at bolstering liquidity and supporting growth initiatives, including ongoing acquisition-related commitments.
NCD Structure and Security Details
The proposed NCDs will be backed by a first-ranking exclusive charge on identified bank accounts and select trademarks of the company. Torrent Pharmaceuticals has indicated that the security cover for the debentures will be maintained at a minimum of 1.1 times.
Key terms such as coupon rate, tenure, and maturity period will be determined at the time of allotment. By opting for this structure, the company aims to secure long-term funding while maintaining financial flexibility. The listing of NCDs on the NSE Wholesale Debt Market is expected to ensure transparency and regulatory compliance.
Purpose of the Fundraising
Torrent Pharmaceuticals plans to use the proceeds to strengthen its liquidity position and finance strategic growth plans. This includes funding acquisitions, research and development activities, and routine capital expenditure.
The company is currently in the final stages of acquiring JB Chemicals, having already received approval from the Securities and Exchange Board of India (SEBI) for the minimum tender offer. Management has also indicated that part of the funds will be directed towards advancing its product pipeline, particularly in high-growth therapeutic areas.
Financial Performance and Balance Sheet Position
For the second quarter, Torrent Pharmaceuticals reported revenue of ₹3,302 crore, reflecting a 14% year-on-year increase. Operating EBITDA for the period stood at ₹1,083 crore, translating into a healthy margin of 32.8%.
The company’s leverage remains comfortable, with a net debt-to-EBITDA ratio of 0.45x. Torrent Pharma has outlined annual capital expenditure plans of ₹250–₹300 crore over the next three years, alongside a ramp-up in R&D filings for the US market and new product launches across India and Brazil, including GLP-1 analogue therapies.
Summary
Torrent Pharmaceuticals’ decision to raise up to ₹12,500 crore through secured NCDs reflects a proactive approach to funding growth while maintaining balance sheet strength. With strong operating performance, low leverage, and clear visibility on acquisitions and R&D investments, the proposed fundraise is positioned to support the company’s long-term expansion strategy without significantly increasing financial risk.
Disclaimer:
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