CARE BBB- rating assigned to proposed NCD issue of Wockhardt Limited
(Time Zone: Arizona, USA)
CARE Ratings Limited (CARE Ratings) has assigned Wockhardt Limited's proposed Non-Convertible Debenture issue aggregating to Rs. 200 crore a rating of "CARE BBB-; Stable (Triple B Minus; Outlook: Stable)".
The rating assigned to proposed non-convertible debenture issue factors in improvement in company's liquidity position post closure of sale of select divisions of domestic formulations business to Dr. Reddy's Laboratories Limited (DRL). The company received Rs. Rs.1483 crore upfront and Rs.67 crore were deposited in Escrow account out of which Rs.54 crore have been credited to WL in Q1FY21 which has improved company's liquidity position over medium term. The rating continues to derive strength from established track record of company in global pharmaceutical industry as well as experienced and resourceful promoters. WL's rating also derive strength from strong and diversified product portfolio across multiple therapeutic segments with established marketing network and global presence as well as accredited manufacturing facilities with R&D focused approach-the company being the only global company to receive QIDP status by USFDA for its six anti-infective drugs.
The above rating strengths are tempered by decline in operating performance over past few years; albeit improved in 9MFY21. Moreover, imposition of USFDA alert and company's exposure to regulated markets (especially USA) which is witnessing increased competition continues to impact company's operational efficiency.
Going ahead, further scale up of operating performance while maintaining profitability and resolution of USFDA issues on timely basis remain crucial from credit perspective.
Shares of WOCKHARDT LTD. was last trading in BSE at Rs.459.6 as compared to the previous close of Rs. 438.95. The total number of shares traded during the day was 147036 in over 4321 trades.
The stock hit an intraday high of Rs. 472.5 and intraday low of 438. The net turnover during the day was Rs. 67107086.