Jubilant Pharmova plans to raise Rs 800 crore via maiden bond issue

The funds include a base issue of ₹400 crore.

"This is the first time the company is tapping the local bond market. The bonds will carry a tenure of three years and the indicative pricing for the securities is around 8.50%," said one of the persons, who did not wish to be identified.

Jubilant Pharmova has announced plans to secure ₹800 crore via its first bond issuance within the local market, featuring ₹400 crore as the base amount and an equal greenshoe option. The capital raised will be primarily allocated to the company’s capital expenditure and upcoming expansion efforts. Subscriptions are anticipated chiefly from mutual funds and asset managers, making this a significant moment in the company's bond market debut.

The bonds are likely to be subscribed to mostly by mutual funds and asset managers, as they are likely within their maturity range. The book-building and final bidding for these bonds are likely to take place later this week.