Jubilant Pharmova approves ₹800 crore NCD issue through private placement
The pharmaceutical company’s board has cleared the debt issue, with the interest rate to be determined through the bidding process.
On Monday, Jubilant Pharmova Ltd announced its Board of Directors has given the green light to issue non-convertible debentures (NCDs) worth up to Rs 800 crore through a private placement. The regulatory filing revealed the board approved the sale of up to 80,000 NCDs, each carrying a face value of Rs 1,00,000. These NCDs can be either secured or unsecured and will be redeemable and transferable.
The debentures, which can be listed on the Bombay Stock Exchange (BSE), are planned to have a maturity period of up to five years from the date of allotment. The exact interest rate, or coupon, will be decided during the bidding process. Furthermore, the board sought shareholder authorization through a special resolution by postal ballot to issue NCDs on a private placement basis.
This authorization is limited to an aggregate amount of Rs 2,500 crore, which must not be exceeded at any point in time within a year following the resolution's passage.
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