India New Issue-Nirma issues shorter-tenor bonds to fund Glenmark Life Sciences acquisition, bankers say

Alivus Life Sciences

21/02/2024 10:41

MUMBAI, Feb 21 (Reuters) - India's Nirma  NIRMA.UL  has accepted bids aggregating to 35
billion rupees ($422 million) for a three-part shorter-tenor bonds to fund its acquisition of a
75% stake in Glenmark Pharma's  GLEN.NS  life sciences unit, three bankers said on Wednesday.
    Earlier in the day, the detergent maker had invited bids for bonds maturing in one year and
two days, two years, one month and 16 days, and in three year, one month and 16 days.
    The company will pay an annual coupon of 8.30%, 8.40% and 8.50%, respectively, to investors
of the bond issue.
    Axis Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Aditya Birla Finance,
Aditya Birla Sun Life Mutual Fund, Kotak Mutual Fund, Nippon India Mutual Fund, SBI Mutual Fund
were the anchor investors to the issue, according to bankers.
    In September, Glenmark Pharma said it would sell a 75% stake in Glenmark Life Sciences
 GLEM.NS  to Nirma for 56.52 billion rupees. The deal is expected to be completed in the current
financial year.  urn:newsml:reuters.com:*:nL4N3AX38V
    Crisil Ratings has assigned an "AA" rating for the proposed issue after factoring in the
company's intent to diversify its business via the proposed acquisition.
    The coupon will step up by 25 basis points for every notch downgrade in the ratings of the
bonds.
    Nirma last tapped the bond market in July 2022, when it raised 1 billion rupees via bonds
maturing in 18 months at a coupon of 7.59%.
 
  Here is the list of deals reported so far on Feb. 21: 
             Issuer                                                            
                     Tenure        Coupon (in %)  Issue size (in  Bidding      Rating
                                                  bln rupees)*    date         
                                                                               
 Nirma               1 year and 2  8.30           11              Feb. 21      AA (Crisil,
                     days                                                      India Ratings)
 Nirma               2 years, 1    8.40           12              Feb. 21      AA (Crisil,
                     month and 16                                              India Ratings)
                     days                                                      
 Nirma               3 years, 1    8.50           12              Feb. 21      AA (Crisil,
                     month and 16                                              India Ratings)
                     days                                                      
             IREDA   10 years      7.59           11.30           Feb. 21      AAA (India
                                                                               Ratings, Icra)
             Bank    10 years      7.57           25              Feb. 21      AAA (Crisil,
 of Baroda                                                                     India Ratings)
                                                                               
             REC     10 years      7.47           25              Feb. 21      AAA (Icra)
                                                                               
 REC                 3 years and   7.64           28.75           Feb. 21      AAA (Icra)
                     2 months                                                  
 Can Fin Homes       3 years and   8.25           6+4             Feb. 22      AAA(Crisil,
                     3 months                                                  Icra)
             Tata    3 years       8.10           9.01            Feb. 20      AAA(Crisil,
 Capital Housing                                                               Icra)
 Finance                                                                       
                                                                               
             Kotak   2 years and   8.23           4.50            Feb. 20      AA (Crisil,
 Mahindra Prime      10 months                                                 India Ratings)
                                                                               
 Kotak Mahindra      3 years and   8.2250         6.50            Feb. 20      AA (Crisil,
 Prime               2 months                                                  India Ratings)
             LIC     10 years      7.70 (yield)   16.42           Feb. 20      AAA (Crisil,
 Housing Fin Feb                                                               Careedge)
 2034 reissue                                                                  
                                                                               
 
*Size includes base plus greenshoe for some issues

($1 = 82.9270 Indian rupees)

 (Reporting by Bhakti Tambe; Editing by Varun H K)
 ((Bhakti.Tambe@thomsonreuters.com))