The above rating was placed under watch with developing implications, pursuant to the announcement made by the Company vide its letter dated 27 February 2022, on the acquisition of the biosimilar assets of US-based Viatris Inc. by Biocon Biologics (‘BBL'), a subsidiary of the Company, for a total consideration of USD 3.335 billion, including cash up to USD 2.335 billion and compulsorily convertible preference shares (CCPS) in BBL of USD 1 billion. The upfront cash payment of USD 2 billion is expected to be funded by ~USD 800 million raised through equity infusion in BBL and the remainder is to be funded by debt. CRISIL ratings will continue to monitor progress on the transaction and will remove the ratings from ‘Watch with Developing Implications' category and take a final rating action once the regulatory approvals are in place and the transaction is concluded.