State Bank of India (SBI), the country’s largest lender by assets, is preparing to join a consortium of global banks to finance Sun Pharmaceutical Industries Ltd.’s $12 billion acquisition of Organon & Co., a US-listed pharmaceutical company, according to sources familiar with the matter.
SBI could contribute up to $1 billion toward the deal, pending board approval, making it a key participant alongside Citigroup Inc., JPMorgan Chase & Co., and Mitsubishi UFJ Financial Group Inc. (MUFG).
Sun Pharma’s acquisition of Organon, announced in April, represents one of the largest outbound deals by an Indian company, giving the Indian pharma giant access to Organon’s portfolio of women’s health, biosimilars, and dermatology products.
The deal also allows Sun Pharma to strengthen its presence in the US market, the world’s largest pharmaceutical market, and gain strategic assets in specialty drugs.
The potential participation by SBI is notable because it comes after the Reserve Bank of India (RBI) in February relaxed regulations, allowing domestic banks to finance overseas acquisitions by Indian firms.
Previously, state-run banks were largely restricted from such cross-border lending due to asset-quality concerns, forcing companies to rely on shadow banks, international lenders, or bond markets.
SBI’s involvement highlights growing confidence among Indian public-sector banks to support global expansion by domestic corporates.
SBI has been actively exploring merger and acquisition financing opportunities with Japanese banks, including MUFG. The partnership, formed in March, aims to back large-scale acquisitions in India and overseas.
SBI Chairman Challa Sreenivasulu Setty had earlier mentioned that the bank was in talks with Japanese lenders to jointly fund jumbo acquisition deals, reflecting the increasing role of Indian banks in international corporate finance.
The deal is expected to involve a mix of term loans and syndicated funding. Global investment banks have been evaluating multiple financing structures for Sun Pharma, including debt, equity, and bridge loans.
Analysts suggest that SBI’s participation could lower borrowing costs for Sun Pharma and signal greater involvement of domestic lenders in facilitating India’s overseas corporate ambitions.
Sun Pharma has a market capitalisation of around $40 billion and ranks among India’s top pharmaceutical companies.
Organon, spun off from Merck & Co. in 2021, had a revenue of approximately $2 billion in 2025, providing Sun Pharma with a significant foothold in women’s health and biosimilar segments in the US.
This potential collaboration also reflects India’s growing outbound merger and acquisition activity, as corporates seek access to global markets, intellectual property, and strategic assets to compete internationally.
