Biocon has received a rating letter from ICRA Limited, confirming its credit ratings. ICRA has assigned [ICRA]AA+(Stable) for long-term instruments and [ICRA]A1+ for short-term instruments. The rated amount for these instruments totals ₹450.00 crore. The company has made this information available on its website.
Credit Rating Confirmation
Biocon has received confirmation of its credit ratings from ICRA Limited (ICRA). The rating letter, dated December 16, 2025, outlines the credit ratings for the company’s financial instruments.
Rating Details
ICRA has assigned the following ratings to Biocon’s instruments:
Long Term / Short Term Unallocated: [ICRA]AA+(Stable) / [ICRA]A1+ with a rated amount of ₹450.00 crore.
Acquisition and Financial Impact
Biocon Limited announced on December 6, 2025, its acquisition of minority stakes in Biocon Biologics Limited (BBL), making BBL its wholly-owned subsidiary. The transaction is valued at approximately $1.17 billion.
Funding and Leverage
The $1.17 billion acquisition will be funded through a mix of share swap ($773 million) and cash payment ($400 million). A $200 million cash payment is immediately funded via commercial paper, and the remaining $200 million through a qualified institutional placement (QIP) fund.
Synergies
Post-integration, Biocon anticipates operational and commercial synergies across manufacturing, procurement, and global distribution.
BBL Valuation
The transaction values BBL at a $5.5 billion equity value ($6.6 billion enterprise value).
Debt Management
The Edelweiss structured debt raised in FY2024 to fund BBL’s acquisition of Viatris will be repaid by January 31, 2026, using residual QIP proceeds. The company’s ability to execute its deleveraging plans in a timely manner is critical for sustaining its credit profile.
Source: BSE
