Jubilant Pharmova Clears Rs 800 Crore NCD Issue, Seeks Rs 2,500 Crore Debt Limit

Jubilant Pharmova Ltd. has approved the private placement of up to 80,000 non-convertible debentures with a face value of Rs 1 lakh each, raising up to Rs 800 crore through one or more tranches.

The board cleared the proposal at its meeting on October 12, 2026. The rupee-denominated instruments may be secured or unsecured, listed, rated, redeemable and transferable. They are proposed to be listed on BSE Ltd. and will have a tenure of up to five years from the deemed date of allotment.

The coupon rate will be discovered through the bidding process, while interest may be paid annually, monthly or upon early redemption, depending on the terms of the respective tranche. Jubilant Pharmova has not disclosed the intended use of proceeds, security cover or specific investor terms, which will be detailed in the relevant key information document or information memorandum.

Alongside the immediate Rs 800 crore proposal, the company will seek shareholder approval through a postal ballot for a broader private-placement borrowing authorisation. The special resolution would allow Jubilant Pharmova to maintain non-convertible debt securities of up to Rs 2,500 crore outstanding at any point during a one-year period from the date of approval.

The wider authorisation should not be read as an immediate Rs 2,500 crore fundraising plan. Rather, it provides the company flexibility to issue debt securities within the approved ceiling over the year, subject to applicable laws and regulatory requirements.

The proposed Rs 800 crore issue is sizeable in the context of the company’s balance sheet and investment cycle. Jubilant Pharmova reported consolidated borrowings of Rs 3,219.5 crore as of March 31, 2026. At the maximum issue size, the proposed NCDs would be equivalent to nearly 25 per cent of those borrowings. The amount also represents around 9.7 per cent of FY2026 consolidated revenue of Rs 8,279.6 crore.

The company has been investing heavily in expansion across its radiopharma and sterile injectables operations. Consolidated capital expenditure, including purchases of property, plant, equipment and intangible assets, stood at Rs 1,449.1 crore in FY2026, exceeding operating cash generation of Rs 1,226.8 crore during the year. Management has said capex in FY2027 is expected to remain similar to FY2026, with spending focused on Spokane Line 4, Montreal Line 5 and PET pharmacy expansion.

The debt-raising flexibility comes as the company manages uneven near-term profitability. In the June 2026 quarter, net sales rose 17.3 per cent year-on-year to Rs 2,229.4 crore, but PBIDT excluding other income declined 14.4 per cent to Rs 248 crore. The margin narrowed to 11.1 per cent from 15.2 per cent a year earlier, while profit after Tax fell 45 per cent to Rs 56.4 crore.

Management has attributed recent pressure partly to radiopharma supply constraints and under-absorption of costs at its Montreal facility. It expects improvement in the second half of FY2027 as production and product releases normalise, although the timing remains linked to manufacturing execution and regulatory processes.

As of 2:32 p.m. on October 12, 2026, Jubilant Pharmova shares were trading at Rs 937.65, up 0.69 per cent from the previous close. The stock has declined 10.82 per cent over the past year, compared with a 6.29 per cent fall in the BSE 500, underperforming the benchmark by about 4.5 percentage points.

Disclaimer: The article is for informational purposes only and not investment advice.