Bengaluru, Karnataka, India: December 11, 2025: Biocon Biologics Limited, a fully integrated, global biosimilars company and subsidiary of Biocon Ltd. (BSE: 532523, NSE: BIOCON), today announced that SCP Global Ratings has recognized the Company’s accelerated progress in debt reduction by assigning a Positive outlook to its credit rating. On Dec. 10, 2025, SCP Global Ratings placed its ‘BB’ long-term issuer credit rating on Biocon Biologics and the ‘BB’ issue rating on the senior secured notes issued by the Company with a Positive outlook, underscoring SCP’s view that these developments are a positive step toward retiring debt.
This positive development follows Biocon’s announcement to make Biocon Biologics a wholly owned subsidiary. The company will acquire a stake of about 25% held by minority investors in Biocon Biologics by swapping equity shares of Biocon with Biocon Biologics’ shares. Biocon Limited plans to swap compulsorily convertible preference shares (CCPS) held by Viatris Inc. in its subsidiary, Biocon Biologics Limited, by exchanging them for equity shares and cash. Biocon will also enable other minority investors to exit Biocon Biologics through a similar arrangement.
SCP Global provided the following Rating Action Rationale:
· Biocon’s debt will decline materially by March 2026. This is because we treat the USD 1 billion CCPS as debt-like in our 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.
· The transaction eliminates other instruments that carried put options and allowed credit investors an earlier exit and were therefore viewed as debt-like. By March 31, 2026 Biocon will have already repaid other optionally convertible debentures and redeemable nonconvertible debentures issued to various investors primarily through the proceeds from its INR45 billion equity issuance earlier this year.
· 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 SCP Global Ratings-adjusted debt will fall to about INR120 billion by the end of March 2026, from INR248 billion as of March 2025.
