Jubilant Pharmova Plans to Raise $150 Million Through Rupee Debt Sale for Capital Expenditure

Jubilant Pharmova is preparing to raise approximately ₹1,400 crore, equivalent to about $150 million, through a rupee bond offering. According to two merchant bankers, the primary objective of the fundraise is to invest in capital expenditure.

The company operates across multiple segments, including specialty pharmaceuticals, contract development and manufacturing, generics, drug discovery, and proprietary novel drug businesses. The proposed issuance involves three-year bonds with bullet maturity. The bankers, who spoke on the condition of anonymity as they are not authorized to speak to the media, shared these details on Friday. Jubilant Pharmova did not respond to an email seeking comment.

The notes have been rated AA+ by India Ratings. Market participants indicate that the company could tap the debt market before the end of next month.

India Ratings expects the business profile of the firm to strengthen further over the medium term. This outlook is supported by an increasing contribution from recently commissioned capacities. In the last financial year, Jubilant made a capital expenditure of ₹1,450 crore.

The company plans to utilize the proceeds from the upcoming debt issuance for capital expenditure and to refinance project-related liabilities at its overseas subsidiaries. According to India Ratings, these funds will be directed toward its operating entities in North America.

"Jubilant Pharmova's decision to raise capital through a domestic rupee bond offering reflects a strategic approach to funding its ongoing expansion and refinancing overseas liabilities. Securing an AA+ rating from India Ratings demonstrates strong creditworthiness, which should help the company attract institutional investors for its three-year bonds. Utilizing these funds for North American operating entities and recent capacities indicates a clear focus on strengthening operational scale and medium-term business growth." — Dr. Shishir Gupta, Founder & CEO, StartupLanes