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Biocon Ltd. — Capital/Financing Update 2025
Dec 16, 2025
61176_rns_2025-12-16_f9c60fdf-182d-43b9-8f6a-a50f194b7d42.pdf
Capital/Financing Update
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Biocon Limited 20th KM, Hosur Road Electronic City Bangalore 560 100, India T 91 80 2808 2808 F 91 80 2852 3423 CIN : L24234KA1978PLC003417
www.biocon.com
BIO/SECL/TG/2025-26/140
December 16, 2025
| December 16, 2025 | |
|---|---|
| To, The Secretary BSE Limited Department of Corporate Services Phiroze Jeejeebhoy Towers, Dalal Street,Mumbai – 400 001 |
To, The Secretary National Stock Exchange of India Limited Corporate Communication Department Exchange Plaza, Bandra Kurla Complex Mumbai – 400 050 |
| Scrip Code - 532523 | Scrip Symbol - BIOCON |
Dear Sir/ Madam,
Subject: Intimation regarding Credit Rating
Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Company has received rating letter dated December 16, 2025, from ICRA Limited (‘ICRA’) with the following rating action w.r.t. below mentioned instrument:
| Sl. No. | Instruments | Rated Amount (Rs. In Crores) |
Rating Action |
|---|---|---|---|
| 1 | Long Term / Short Term- Unallocated |
450.00 | [ICRA]AA+(Stable)/ [ICRA]A1+ |
A copy of rating rationale issued by ICRA is enclosed.
The above information will also be available on the website of the Company at www.biocon.com.
Kindly take the same on record and acknowledge.
Thanking You,
Yours faithfully,
For Biocon Limited
Digitally signed RAJESH by RAJESH UMAKAN UMAKANT SHANOY T SHANOY Date: 2025.12.16 19:13:13 +05'30'
Rajesh U. Shanoy Company Secretary and Compliance officer ICSI Membership Number: A16328
Encl.: Rating Rationale by ICRA
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December 16, 2025
Biocon Limited: Update on material event
Summary of rating action
| Instrument* | Previous rated amount (Rs. crore) |
Current rated amount (Rs. crore) |
Rating outstanding |
|---|---|---|---|
| Long term/Short term – Unallocated |
450.00 | 450.00 | [ICRA]AA+ (Stable)/[ICRA]A1+ |
| Total | 450.00 | 450.00 |
*Instrument details are provided in Annexure I
Rationale
Material event
On December 06, 2025, Biocon Limited (Biocon/the company), announced vide a National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) disclosure that it would be acquiring minority stake of Mylan Inc., Serum Institute Life Sciences, Tata Capital, and Activ Pine in Biocon Biologics Limited (BBL), making BBL its wholly-owned subsidiary. The transaction, valued at approximately $1.17 billion, will be funded by Biocon through a mix of share swap (171.3 million shares of Biocon worth $773 million or Rs. 6,950 crore) and a cash payment of $400 million to Mylan Inc. The cash payment to Mylan will be made in two stages – $200 million (Rs. 1,800 crore) to be paid immediately funded through commercial paper (CP) and the remaining $200 million to be funded through a qualified institutional placement (QIP) fund. The share swap ratio has been set at 70.28 Biocon shares for every 100 BBL shares for Serum Institute Life Sciences, Tata Capital, and Activ Pine, and 61.70 Biocon shares for every 100 BBL shares for Mylan Inc., based on Biocon’s share price of Rs. 405.78. According to the company, this restructuring aims to simplify the Group’s corporate structure, eliminate the holding company discount for Biocon, and consolidate operations under Biocon. Post-integration, Biocon expects operational and commercial synergies across manufacturing, procurement, and global distribution.
Impact of material event
The proposed acquisition is expected to be strategically positive for Biocon, as it simplifies the Group structure. By making BBL its wholly-owned subsidiary, Biocon will gain full control over its largest revenue contributor (58% of consolidated revenues in FY2025), enabling better operational alignment. The integration is anticipated to deliver synergies across supply chain, procurement, and commercial operations.
From a financial perspective, the transaction values BBL at $5.5 billion equity value ($6.6 billion enterprise value) and involves a cash payment of $400 million to Mylan Inc., which will be funded through a two-step mechanism: (i) interim bridge financing via commercial paper of up to Rs. 1,800 crore and (ii) a QIP of up to Rs. 4,500 crore. The proposed QIP will be utilised to repay the aforementioned CP and pay the remaining Rs. 1,800 crore to Mylan Inc. Additionally, the Edelweiss structured debt raised in FY2024 to fund BBL’s acquisition of Viatris will be repaid by January 31, 2026, using the residual QIP proceeds.
Post-integration, while the consolidated leverage is expected to reduce as the entire structured debt gets repaid, Biocon’s adjusted net debt (excluding structured debt) is not likely to alter materially as the entire QIP proceeds will be earmarked for CP repayment and payment to Edelweiss. Key monitorable factors include the timely repayment of the CP following the successful equity raise by Biocon through a QIP. Biocon’s ability to maintain adequate liquidity and execute its deleveraging plans in a timely manner will be critical for sustaining its credit profile.
www.icra.in
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Please refer to the following link for the previous detailed rationale that captures the key rating drivers and their description, liquidity position, and rating sensitivities: Click here
Analytical approach
| Analytical approach | Comments |
|---|---|
| Applicable rating methodologies | Corporate Credit Rating Methodology Pharmaceuticals |
| Parent/Group support | Not applicable |
| Consolidation/Standalone | For arriving at the ratings, ICRA has considered the consolidated financials of Biocon. Refer to Annexure II for the list of entities considered for consolidation. |
www.icra.in
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About the company
Biocon Limited was initially set up as a joint venture (JV) between Biocon Biochemicals Limited of Ireland and Indian entrepreneur Ms. Kiran Mazumdar Shaw in 1978 to manufacture and export enzymes. After the JV partner was acquired by Unilever and the businesses were restructured, Biocon became an independent entity, and the Indian promoters bought the entire stake in 1998. In 2000, the company commissioned its first fully automated submerged fermentation plant to produce speciality biopharmaceuticals and received US Food and Drug Administration (FDA) approval for lovastatin in 2001. From being a predominantly fermentation-based active pharmaceutical ingredient (API) and enzymes manufacturer, Biocon has emerged as a research & development (R&D) based biotechnology company, having developed its own proprietary products and offering research services to global pharmaceutical majors.
Key financial indicators (audited)
| Biocon consolidated | FY2024 | FY2025 | H1 FY2026** |
|---|---|---|---|
| Operating income | 14,755.7 | 16,319.0 | 8,237.4 |
| PAT | 1,382.0 | 1,429.4 | 222.0 |
| OPBDIT*/OI | 22.6% | 26.8% | 19.4% |
| PAT/OI | 9.4% | 8.8% | 2.7% |
| Total outside liabilities/Tangible net worth (times) | 1.2 | 1.1 | 0.9 |
| Total debt/OPBDIT (times) | 5.4 | 4.5 | 5.2 |
| Interest coverage (times) | 3.4 | 4.9 | 2.9 |
Source: Company, ICRA Research; **Results; All ratios as per ICRA’s calculations; Amount in Rs. crore; PAT: Profit after tax; OPBDIT: Operating profit before depreciation, interest, and taxes; * includes gain of Rs. 1,057 crore from the sale of branded formulations (BF) segment to Eris Lifesciences in FY2025
Status of non-cooperation with previous CRA: Not applicable
Any other information: None
www.icra.in
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Rating history for past three years
| Current (FY2026) Chronology of rating history for the past 3 years |
Current (FY2026) Chronology of rating history for the past 3 years |
|---|---|
| FY2026 | FY2026 FY2025 FY2024 FY2023 |
| Instrument Type Amount rated (Rs. crore) Dec 16, 2025 |
Date Rating Date Rating Date Rating Date Rating |
| Unallocated Long term/ Short term 450.00 [ICRA]AA+ (Stable)/ [ICRA]A1+ |
Oct 30, 2025 [ICRA]AA+ (Stable)/ [ICRA]A1+ - - - - - - |
| Fund based/ Non-fund based – Others Long term/ Short term - - |
- - Aug 30, 2024 [ICRA]AA+ (Stable)/ [ICRA]A1+ Aug 04, 2023 [ICRA]AA+ (Stable)/ [ICRA]A1+ Jun 30, 2022 [ICRA]AA+&/ [ICRA]A1+& |
| - - - - - - Nov 17, 2022 [ICRA]AA+&/ [ICRA]A1+ |
|
| Fund based – Term loan Long term - - |
- - Aug 30, 2024 [ICRA]AA+ (Stable) Aug 04, 2023 [ICRA]AA+ (Stable) Jun 30, 2022 [ICRA]AA+& |
| - - - - - - Nov 17, 2022 [ICRA]AA+& |
|
| Unallocated Long term - - |
- - - - - - Jun 30, 2022 [ICRA]AA+& |
| Commercial paper Short term - - |
- - Aug 30, 2024 [ICRA]A1+; withdrawn Aug 04, 2023 [ICRA]A1+ Nov 17, 2022 [ICRA]A1+ |
&: Under Watch with Developing Implications
Complexity level of the rated instruments
| Instrument | Complexity indicator |
|---|---|
| Long term/Short term – Unallocated | Not applicable |
The Complexity Indicator refers to the ease with which the returns associated with the rated instrument could be estimated. It does not indicate the risk related to the timely payments on the instrument, which is rather indicated by the instrument's credit rating. It also does not indicate the complexity associated with analysing an entity's financial, business, industry risks or complexity related to the structural, transactional or legal aspects. Details on the complexity levels of the instruments are available on ICRA’s website: Click here
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Annexure I: Instrument details
| Date of | Amount rated | |||||
|---|---|---|---|---|---|---|
| ISIN | Instrument name | issuance | Coupon rate | Maturity | (Rs. crore) |
Current rating and outlook |
| NA | Long term/Short term – Unallocated |
NA |
NA | NA | 450.00 | [ICRA]AA+ (Stable)/ [ICRA]A1+ |
Source: Company
- Please click here to view details of lender wise facilities rated by ICRA
Annexure II: List of entities considered for consolidated analysis
| Company name | Biocon ownership | Consolidation approach |
|---|---|---|
| Syngene International Limited | 52.5% | Full consolidation |
| Biocon Pharma Limited (BPL) | 100.0% | Full consolidation |
| Biocon Biologics Limited | 76.8% | Full consolidation |
| Biocon Biosphere Limited | 100.0% | Full consolidation |
| Biocon Academy | 100.0% | Full consolidation |
| Syngene Scientific Solutions Limited | 52.5% | Full consolidation |
| Syngene Manufacturing Solutions Limited | 52.5% | Full consolidation |
| Biocon SA | 100.0% | Full consolidation |
| Biocon Sdn Bhd | 76.8% | Full consolidation |
| Biocon Biologics Healthcare Malaysia SDN BHD | 76.8% | Full consolidation |
| Biocon Biologics International Limited (Formerly Biocon Biologics UK Limited) |
76.8% | Full consolidation |
| Biocon Pharma UK Limited | 100.0% | Full consolidation |
| Biocon Biologics UK PLC (Formerly Biosimilars Newco Limited) | 76.8% |
Full consolidation |
| Biocon Biologics Inc | 76.8% | Full consolidation |
| Biocon Pharma Inc | 100.0% | Full consolidation |
| Syngene USA Inc | 52.5% | Full consolidation |
| Biocon Biologics do Brasil Ltda | 76.8% | Full consolidation |
| Biocon Biologics FZ-LLC | 76.8% | Full consolidation |
| Biocon FZ LLC | 100.0% | Full consolidation |
| Biocon Pharma Ireland Limited | 100.0% | Full consolidation |
| Biosimilars Collaborations Ireland Limited | 76.8% | Full consolidation |
| Biocon Pharma Malta Limited | 100.0% | Full consolidation |
| Biocon Pharma Malta I Limited | 100.0% | Full consolidation |
| Biocon Biologics Canada Inc | 76.8% | Full consolidation |
| Biocon Biologics Germany GmbH | 76.8% | Full consolidation |
| Biocon Biologics France S.A.S | 76.8% | Full consolidation |
| Biocon Biologics Spain S.L. | 76.8% | Full consolidation |
| Biocon Biologics Switzerland AG | 76.8% | Full consolidation |
| Biocon Biologics Belgium BV | 76.8% | Full consolidation |
| Biocon Biologics Finland OY | 76.8% | Full consolidation |
| Biocon Generics Inc | 100.0% | Full consolidation |
| Biocon Biologics Morocco S.A.R.L.A.U | 76.8% | Full consolidation |
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| Company name | Biocon ownership | Consolidation approach |
|---|---|---|
| Biocon Biologics Greece SINGLE MEMBER P.C | 76.8% | Full consolidation |
| Biocon Biologics South Africa (PTY) Ltd | 76.8% | Full consolidation |
| Biocon Biologics (Thailand) Co Ltd | 76.8% | Full consolidation |
| Biocon Biologics Philippines Inc | 76.8% | Full consolidation |
| Biocon Biologics Italy S.R.L | 76.8% | Full consolidation |
| Biocon Biologics Croatia LLC | 76.8% | Full consolidation |
| Biocon Biologics Global PLC | 76.8% | Full consolidation |
Note: Company Annual Report FY2025
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ANALYST CONTACTS
Jitin Makkar +91 124 4545 300 [email protected]
Kinjal Shah +91 22 6114 3400 [email protected]
Mythri Macherla +91 22 6114 3435 [email protected]
Aman Mundhada +91 22 6114 3471 [email protected]
RELATIONSHIP CONTACT
L. Shivakumar
+91 22 6114 3406 [email protected]
MEDIA AND PUBLIC RELATIONS CONTACT
Ms. Naznin Prodhani
Tel: +91 124 4545 860 [email protected]
HELPLINE FOR BUSINESS QUERIES
+91-9354738909 (open Monday to Friday, from 9:30 am to 6 pm)
ABOUT ICRA LIMITED
ICRA Limited was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional investment Information and Credit Rating Agency.
Today, ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA). ICRA is a Public Limited Company, with its shares listed on the Bombay Stock Exchange and the National Stock Exchange. The international Credit Rating Agency Moody’s Investors Service is ICRA’s largest shareholder.
For more information, visit www.icra.in
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ICRA Limited
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Registered Office
B-710, Statesman House, 148 Barakhamba Road, New Delhi-110001 Tel: +91 11 23357940-45
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Branches
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© Copyright, 2025 ICRA Limited. All Rights Reserved.
Contents may be used freely with due acknowledgement to ICRA.
ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are subject to a process of surveillance, which may lead to revision in ratings. An ICRA rating is a symbolic indicator of ICRA’s current opinion on the relative capability of the issuer concerned to timely service debts and obligations, with reference to the instrument rated. Please visit our website www.icra.in or contact any ICRA office for the latest information on ICRA ratings outstanding. All information contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable, including the rated issuer. ICRA however has not conducted any audit of the rated issuer or of the information provided by it. While reasonable care has been taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of any kind, and ICRA in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. Also, ICRA or any of its group companies may have provided services other than rating to the issuer rated. All information contained herein must be construed solely as statements of opinion, and ICRA shall not be liable for any losses incurred by users from any use of this publication or its contents.
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