Business · Companies · 1 hr ago
Sun Pharma raises ₹7,816 crore in bonds, below its ₹10,000 crore target
Sun Pharma raised ₹7,816 crore through bonds, below its ₹10,000-crore target.
The Mumbai-based drugmaker offered five-year bonds paying 8.05% and seven-year bonds paying 8.20%.
Rising market yields made investors more cautious about committing money at the offered rates.
Government and corporate bond yields had increased, reducing the extra return investors saw for taking on corporate credit risk.
Anchor investors contributed ₹2,100 crore, including insurance companies, mutual funds and pension funds.
The bonds have a AAA/Stable rating from Crisil Ratings.
The available information does not say whether Sun Pharma plans to seek the remaining amount.
Sun Pharma raised ₹7,816 crore through two bond tranches, below its ₹10,000-crore fundraising target.
The bonds carry annual coupon rates of 8.05% and 8.20%, with maturities of five years and five years and one day.
Rising bond yields made investors more cautious and led them to seek returns higher than the company was willing to pay, according to people familiar with the transaction.
The issue received ₹2,100 crore in anchor investments from investors including insurers, mutual funds and pension funds.
The 8.05% tranche includes a put option allowing investors to demand repayment after 17 months.
- Who
- Sun Pharma raised the funds. Investors submitted bids for the bonds.
- What
- It accepted bids worth ₹7,816 crore for two bond tranches, short of its ₹10,000-crore target.
- When
- October 22, 2026.
- Where
- India.
- Why
- Rising market yields made investors more cautious and reduced the appeal of the offered pricing.
Sun Pharma
Bond investors
Pricing
Sun Pharma
Sun Pharma was willing to pay the offered coupon rates of 8.05% and 8.20%.
Bond investors
Investors demanded returns higher than the company was willing to pay, according to people familiar with the transaction.
Sun Pharma invited bids from bankers and investors.
Sun Pharma accepted bids worth ₹7,816 crore for two bond tranches.
- Total accepted bids
- ₹7,816 crore
- Fundraising target
- ₹10,000 crore
- Five-year tranche coupon
- 8.05%
- Seven-year tranche coupon
- 8.20%
- Anchor investments
- ₹2,100 crore
- Put option
- Investors can demand repayment after 17 months on the 8.05% tranche
2 sources
What people are saying
The company managed to raise around ₹8,000 crore at the pre-fixed pricing, which is a fantastic outcome considering that market yields have moved up by 15 basis points