CARE places GTBL ratings on Negative Watch over large acquisitions
GUJTHEM · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
CARE Ratings has placed Gujarat Themis Biosyn's long-term bank facility rating of BBB (about Rs 75 crore) and short-term A3+ (about Rs 5 crore) on Rating Watch with Negative Implications. The action is driven by two major acquisitions planned: 100 percent stake in MicroBiopharm Japan for about Rs 1,300 crore and an asset purchase from Sanofi for about Rs 1,700 crore. These deals are roughly 10 times the company's tangible net worth. GTBL plans to raise about Rs 1,000 crore via QIP to fund part of the acquisitions. The company has filed a formal dissent letter contesting the rating action.
Negative watch signals possible downgrade risk if acquisition funding clarity does not emerge. GTBL has contested the action, but stock may see pressure until funding mix is finalised.