 "Biocon, Biocon logo")
Biocon Ltd’s equity fund raise worth Rs 4,500 crore will help the pharmaceutical firm reduce its adjusted debt to Rs 20,000 crore by March 2026, against an earlier expectation of over Rs 25,000 crore, according to S&P Global Ratings.
The adjusted debt includes $1 billion in compulsorily convertible preference shares issued to Viatris Inc.
On 20 June 2025, the Biocon group completed its qualified institutional placement (QIP) of equity shares in Biocon Ltd, raising Rs 4,500 crore.
In a statement, the rating agency said: “We believe the group will use proceeds from the equity issuance to repay debt over fiscal 2026.” This would include optionally convertible debentures and commercial paper borrowings amounting to about Rs 2,300 crore, along with Rs 2,100 crore to repay additional debt by mid-2026.
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An equity issuance by Biocon Ltd will support the group’s liquidity. The group will have more flexibility to plan future fundraising following the issuance. “We believe debt repayments for structured instruments will strengthen Biocon’s capital structure,” it added.
The agency considers Biocon Biologics Ltd (BBL) a core and inseparable part of the Biocon group. Therefore, the issuer credit rating on BBL (BB/Stable/--) reflects the view of the group credit profile.
Deleveraging at the Biocon group is likely to progress at a steady pace. New product launches in the group’s generics and biosimilars segments, along with steady growth in its contract research, development and manufacturing business, will underpin the group’s operating cash flow.
The group is estimated to generate Rs 2,000–2,500 crore in annual operating cash flow in fiscals 2026 and 2027. This will be sufficient to meet capital investment requirements, with limited need for further fundraising, it added.
