India’s Nirma has accepted bids aggregating to 35 billion rupees ($422 million) for a three-part shorter-tenor bonds to fund its acquisition of a 75% stake in Glenmark Pharma’s life sciences unit, three bankers said on Wednesday.
Earlier in the day, the detergent maker had invited bids for bonds maturing in one year and two days, two years, one month and 16 days, and in three year, one month and 16 days.
The company will pay an annual coupon of 8.30%, 8.40% and 8.50%, respectively, to investors of the bond issue.
Axis Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Aditya Birla Finance, Aditya Birla Sun Life Mutual Fund, Kotak Mutual Fund, Nippon India Mutual Fund, SBI Mutual Fund were the anchor investors to the issue, according to bankers.
In September, Glenmark Pharma said it would sell a 75% stake in Glenmark Life Sciences to Nirma for 56.52 billion rupees. The deal is expected to be completed in the current financial year.
Crisil Ratings has assigned an “AA” rating for the proposed issue after factoring in the company’s intent to diversify its business via the proposed acquisition.
The coupon will step up by 25 basis points for every notch downgrade in the ratings of the bonds.
Nirma last tapped the bond market in July 2022, when it raised 1 billion rupees via bonds maturing in 18 months at a coupon of 7.59%.
Source: Business-Standard