CARE places GTBL bank facility ratings on watch with negative implications
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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
CARE Ratings placed GTBL's bank facility ratings (CARE BBB long term on Rs 75 crore term loan, CARE A3+ short term on Rs 5 crore) on Rating Watch with Negative Implications. The trigger is two large planned acquisitions: 100% stake in MicroBiopharm Japan for about Rs 1,300 crore and Sanofi's anti-TB and anti-infective brand portfolio for about Rs 1,700 crore, together around 10 times GTBL's tangible net worth. CARE flagged uncertainty over the funding mix. GTBL plans to raise Rs 1,000 crore through a QIP and has formally dissented against the rating action.
Watch with negative view may raise future borrowing costs; hinges on QIP success and how acquisitions are funded. Mildly negative near term.