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Listen to this article in summarized format The drugmaker priced the five-year tranche at a coupon of 8.05% and the seven-year tranche at 8.20%. The fundraising came amid a recent hardening in government and corporate bond yields, which made investors more cautious about locking in returns at prevailing rates. "The company managed to raise around ₹8,000 crore at the pre-fixed pricing, which is a fantastic outcome considering that market yields have moved up by 15 basis points," said a debt banker. Sun Pharma successfully secured ₹7,816 crore in its latest fundraising round, yet it fell short of its ambitious ₹10,000-crore target. The company opted for five- and seven-year bonds, pricing them at 8.05% and 8.20% respectively. A significant ₹2,100 crore was raised through anchor investments to bolster this effort, although rising market yields have made investors cautious about committing funds. Read more: Record galore! Jio IPO claims crown for highest QIB demand among India’s 5 largest issues, edges past NSE The two tranches also received ₹2,100 crore in anchor investments from investors including general and life insurance companies, mutual funds, pension funds. The issuer planned to raise up to ₹3,000 crore through the first tranche, which carries a put option after 17 months, and ₹7,000 crore through the second tranche. A Sun Pharma spokesperson did not respond to requests for a comment. The spread between sovereign debt and AAA-rated corporate bonds has compressed, with the 10-year government bond yield rising above 7.4%, leaving investors with a smaller premium for taking on corporate credit risk, particularly amid rising yields. Crisil Ratings has assigned AAA/Stable rating to the proposed NCDs. "The 10-year government bond yield had risen to around 7.40%-7.45%, from about 7.36%-7.37% the previous week," another banker said. Read more: Jio leverage play pops up at SBI as India brokers lure IPO bets Corporate bond yields had also hardened by around 10-20 basis points in recent sessions, reducing the appeal of locking in longer-dated investments at earlier pricing levels. SBI Capital Markets, Standard Chartered Bank and MUFG Securities India are arrangers of the issuance. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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