Biocon credit rating affirmed after strategic restructuring update

Biocon Limited announced on December 16, 2025, that its long-term/short-term credit rating for unallocated instruments has been affirmed at [ICRA]AA+ (Stable)/[ICRA]A1+ by ICRA Limited. This reaffirmation follows Biocon's disclosure on December 6, 2025, regarding the acquisition of minority stakes in Biocon Biologics Limited (BBL) from Mylan Inc., Serum Institute Life Sciences, Tata Capital, and Activ Pine, making BBL a wholly-owned subsidiary. The transaction is valued at approximately $1.17 bn.

The acquisition will be funded through a mix of share swap (171.3 million Biocon shares worth $773m) and a cash payment of $400m to Mylan Inc. The cash payment will be made in two stages: an immediate $200m funded by commercial paper (CP), and the remaining $200m funded through a qualified institutional placement (QIP). The restructuring aims to simplify the corporate structure, eliminate holding company discounts, and consolidate operations under Biocon, expecting operational and commercial synergies.

Financially, the transaction values BBL at $5.5 bn equity value and $6.6 bn enterprise value. Interim bridge financing via CP and a QIP will be used to fund the cash payment and repay the CP. The Edelweiss structured debt raised in fiscal year 2024 for BBL's acquisition of Viatris is also expected to be repaid by January 31, 2026, using residual QIP proceeds. Biocon's ability to maintain adequate liquidity and execute its deleveraging plans remains critical for its credit profile.