Torrent Pharmaceuticals Limited has informed the Exchange about issue of Securities
TORNTPHARM · price
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Torrent Pharmaceuticals' Securities Transfer and Stakeholders Relationship Committee approved the issuance of Secured, Rated, Listed, Redeemable Non-Convertible Debentures (NCDs) aggregating up to ₹12,500 crore on a private placement basis, in one or more tranches. The issue will consist of up to 12,50,000 NCDs with a face value of ₹1,00,000 each, and will be listed on the Wholesale Debt Market segment of the NSE. The coupon rate, tenure, and allotment date are yet to be determined. The NCDs will be secured by a first-ranking exclusive charge over a designated account and specified trademarks, maintaining a minimum security cover of 1.1x.
This is a large debt-raising exercise that will increase the company's borrowings, potentially impacting its leverage and interest costs, though the purpose of the fundraise is not disclosed. Since these are NCDs (not equity), there is no dilution for existing shareholders, but the eventual coupon rate will determine the cost of this debt.