SPSun Pharmaceutical Industries524715NCD issuance

Allotment of rated, listed, unsecured NCDs of INR 7,816 crore on private placement basis

Sun Pharma has completed the allotment of rated, listed, unsecured, redeemable, non-convertible debentures (NCDs) on a private placement basis.

By ScoutQuest · Mon 26 Oct 2026, 12:31 PM IST · 2 min read

Aggregate face value

INR 7,816 crore — Series A INR 2,003 crore and Series B INR 5,813 crore

Coupons

Series A 8.05% p.a., Series B 8.20% p.a.

Tenure / redemption

5 years and 1 day; scheduled redemption 27 October 2031

The company has completed the allotment of rated, listed, unsecured, redeemable, non-convertible debentures (NCDs) on a private placement basis through the electronic book mechanism. The deemed date of allotment is 26 October 2026.

Series-wise break-up

• Series A: ~2 lakh debentures of face value INR 1,00,000 each, aggregate face value INR 2,003 crore, coupon 8.05% p.a.
• Series B: ~5.61 lakh debentures of face value INR 1,00,000 each, plus 20,000 debentures of face value INR 1,00,000 each issued at INR 1,00,010 per debenture (including a premium of INR 10 per debenture); aggregate face value INR 5,813 crore, coupon 8.20% p.a.
• Total aggregate face value: INR 7,816 crore; aggregate issue consideration: INR 7,816.02 crore

How the issue size was reached

• The base issue size of INR 7,000 crore was fully subscribed.
• Based on bids received and accepted, the company exercised the greenshoe option to the extent of ₹816 crore, out of a greenshoe option of up to INR 3,000 crore.

Terms to note

• Tenure is 5 years and 1 day from the deemed date of allotment, with scheduled redemption on 27 October 2031.
• Series A debentures carry a put option exercisable on 27 March 2028; principal is repayable at par on that date if the option is exercised.
• Interest is payable half-yearly: Series A on 27 March each year from 2027 to 2031 and on 27 October 2031; Series B on 27 October each year from 2027 to 2031.
• The debentures are unsecured and are not secured by any charge over the assets of the company.
• The NCDs are proposed to be listed on BSE Limited and National Stock Exchange of India Limited.

What this means

• This is a borrowing transaction: the company raises long-term debt of INR 7,816 crore and will pay interest at 8.05% and 8.20% p.a. on the two series.
• The instrument is non-convertible, so it does not convert into equity shares; the money comes in as debt that is repayable at par on the scheduled redemption date.
• Because the debentures are unsecured, holders have no charge over the company's assets; the terms instead rest on the rating and the company's repayment obligation.
• The put option on Series A gives those holders an early exit date in March 2028, before the 2031 maturity.

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