Torrent Pharmaceuticals Limited has received credit rating reaffirmation from ICRA Limited, maintaining its strong financial standing in the pharmaceutical sector. The company announced this development through a regulatory filing dated January 5, 2026, in compliance with SEBI disclosure requirements.

Credit Rating Details

ICRA Limited has taken the following rating actions for Torrent Pharmaceuticals:

The reaffirmation of the [ICRA] AA+ (Stable) rating for both banking facilities and NCDs indicates ICRA's continued confidence in the company's creditworthiness and financial stability. The stable outlook suggests that the rating agency expects the company to maintain its current credit profile over the medium term.

Commercial Paper Programme Enhancement

A notable aspect of the rating action is ICRA's decision regarding the commercial paper programme. The rating agency has not only reaffirmed the [ICRA] A1+ rating for the existing amount but has also assigned the same rating for an enhanced amount. This development suggests that Torrent Pharmaceuticals is expanding its short-term funding capabilities while maintaining the highest short-term credit rating category.

Regulatory Compliance

The announcement was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary Chintan M. Trivedi signed the disclosure document, ensuring proper compliance with stock exchange notification requirements for both BSE and NSE, where the company's shares are listed under scrip codes 500420 and TORNTPHARM respectively.

The credit rating reaffirmation reflects positively on Torrent Pharmaceuticals' financial management and operational performance, providing stakeholders with continued confidence in the company's credit quality and debt servicing capabilities.

Torrent Pharmaceuticals has received approval from its Securities Transfer and Stakeholders Relationship Committee (STSRC) for the issuance of non-convertible debentures worth up to ₹12,500.00 crores. The committee meeting held on Monday approved the comprehensive debt fundraising initiative through private placement, marking a significant step in the pharmaceutical company's capital structure optimization strategy.

Committee Approval and Market Performance

The STSRC meeting approved the issuance of Secured, Rated, Listed, Redeemable Non-Convertible Debentures aggregating up to ₹12,500.00 crores in one or more tranches. The approval was disclosed to both BSE and NSE pursuant to Regulation 30 and Regulation 51 of SEBI Listing Regulations. Following the announcement, shares of the company ended 0.25% down at ₹3,875.10 apiece on the BSE.

Comprehensive Debenture Structure

The approved NCDs carry detailed specifications designed to attract institutional and retail investors:

Security Framework and Strategic Context

The debentures will be backed by a robust security framework to provide investor protection. The company will create a first ranking exclusive charge over designated accounts where NCD proceeds will be deposited and specified trademarks of the issuer. This security structure is designed to provide a minimum security cover of 1.10x, enhancing the investment appeal for potential subscribers.

This fundraising initiative comes after Torrent Pharma announced its acquisition of a majority stake in J B Chemicals and Pharmaceuticals in a ₹19,500.00 crore deal. The private placement route allows the pharmaceutical company to access institutional capital efficiently while maintaining flexibility in terms and conditions.

Investment Features and Timeline

The listing on NSE's Wholesale Debt Market Segment will provide liquidity to investors, enabling secondary market trading of these instruments. The annual payment schedule for both coupon and principal offers predictable cash flows for investors. The specific tenure, allotment date, maturity date, and coupon rates will be determined and communicated at the time of issuance, providing the company with market timing flexibility.

The rights and privileges of NCD holders will be detailed in the final debenture trust deed to be executed between the company and the debenture trustee. This substantial debt fundraising positions the pharmaceutical company to pursue growth opportunities while optimizing its capital structure through non-dilutive financing.