Sun Pharma set to buy Organon for $11.75bn, raise ₹10,000cr
Sun Pharma is gearing up to buy Organon for $11.75 billion and plans to raise ₹10,000 crore through bonds to help fund the deal.
The bonds come in two parts: ₹7,000 crore at 8.20% and ₹3,000 crore at 8.05%, both maturing in 2031.
Big players like SBI Pension Fund and ICICI Prudential Mutual Fund are expected to invest after the board greenlit up to ₹15,000 crore in debentures.
Deal strengthens Sun Pharma women's health
This move will seriously boost Sun Pharma's presence in women's health, a space Organon is known for.
To pay for it all, Sun Pharma will use some of its own cash ($2-2.5 billion) and borrow the rest.
The bonds have an AAA/Stable rating from Crisil Ratings (so low risk), and SBI Capital Markets, Standard Chartered Bank, and MUFG Securities India are arranging the bond sale.
It's a big step as Sun Pharma looks to grow globally and diversify what it offers.