Biocon gains 3% after board to mull raising funds via commercial papers

Biocon share price gained 2.61 per cent at Rs 398 a piece on the BSE in Thursday’s intraday trade. This came after the pharmaceutical firm said that its board of directors will consider and approve raising of funds through issuance of commercial papers (CPs) or through any other mode on private placement basis. 

 

The meeting board of directors is scheduled to be held on Monday, January 27, 2025, the company said in an exchange filing on Wednesday.

 

Moreover, India Ratings and Research (Ind-Ra), domestic credit rating agency announced its rating actions on Biocon Limited's debt instruments. 

 

The rating for the non-convertible debentures (NCDs) amounting has been affirmed as ‘IND AA+/Stable’. Similarly, a rating of ‘IND A1+’ was assigned to the proposed commercial papers. Meanwhile, the term loan under external commercial borrowings (ECBs), also had its rating affirmed at ‘IND AA+/Stable’. 

 

India Ratings and Research in its rationale said that the ratings reflect Biocon’s strong position in the global biosimilar market. In November 2023, Biocon Biologics Limited (BBL) completed the transition of the biosimilars business acquired from Viatris Inc., boosting its market share in key products, particularly in the US and EU. Further regulatory issues at major biosimilar and insulin manufacturing facilities have been resolved, enhancing visibility for pipeline launches expected to significantly scale EBITDA in FY26-FY27, the credit rating agency said.  

 

“While debt reduction is now expected to be delayed, refinancing efforts have eased near-term liquidity pressures. Significant upcoming product launches at BBL could enable equity raises, improving credit metrics from FY27 onwards by reducing balance sheet-linked equity structures,” India Ratings and Research said in a report. 

 

On the equities front, Biocon share price has underperformed the market, falling 10 per cent in the last six months, while losing 24 per cent in the last one year. In comparison, the BSE Sensex has slipped 4.9 per cent in the last six months, while rising 7.2 per cent in the last one year. 

 

Biocon has a total market capitalisation of Rs 47,627.80 crore.  Its shares are listed at a price to earnings multiple of 1133.71 and at an earning per share of 0.35.

 

At 1:24 PM, the stock price of the company fell by 2.28 per cent at Rs 396.70 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.31 per cent to 76,642.01 level.