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Informist, Thursday, Dec. 11, 2025

NEW DELHI – Biocon Ltd. Thursday said ratings agency S&P Global has placed the rating on Biocon Biologics on 'creditwatch positive'. This comes after the Hyderabad-based pharmaceutical major said it would acquire around 23% of the stake held by minority investors in Biocon Biologics, thereby making it a wholly owned subsidiary of Biocon. On Wednesday, S&P Global issued a 'BB' long-term issuer rating on Biocon Biologics with positive implications.

"The transaction includes the US$1 billion CCPS issued to Viatris that will be swapped for US$415 million worth of equity shares of Biocon and US$400 million in cash. Biocon will also swap shares of equity investors (Serum Institute) and offer fresh equity shares to credit investors (Tata Capital, True North) in this transaction," S&P Global said in its note.

The rating firm expects Biocon's debt to decline materially by March, with S&P Global treating the $1 billion compulsorily convertible preference shares as debt-like in their financial ratios. "Importantly, Biocon proposes to fund the cash consideration to be paid to Viatris entirely through fresh equity issuance of about Indian rupee (INR) 45 billion," S&P said. 

"Pro forma the transaction, we expect Biocon's capital structure to comprise only the senior secured notes, bilateral loans, and working capital borrowings. We estimate the company's S&P Global Ratings-adjusted debt will fall to about INR 120 billion by the end of March 2026, from INR 248 billion as of March 2025," S&P said. 

Biocon recently announced that it will acquire the entire 23.3% minority stake in Biocon Biologics, which was held by Vitaris, Serum Institute, True North, and Tata Capital, for $1.2 billion. This acquisition will make Biocon Biologics a wholly owned subsidiary and value it at $5.5 billion. Biocon will issue its shares worth $773 million and pay Viatris $400 million in cash. This cash payment will be made via interim funding and a qualified institutional placement or a preferential issue or rights issue by Biocon. 

Biocon reported a consolidated net profit of INR 845 million for the September quarter on revenue of INR 42.96 billion. On Thursday, shares of the company closed 0.7% higher at INR 381.75 on the National Stock Exchange.   End

US$1 = INR 90.37

Reported by Anand JC

Edited by Deepshikha Bhardwaj

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