CRISIL Ratings has removed its long term bank facilities and non-convertible debentures (NCDs) of Jubilant Pharmova Limited from 'Rating Watch with Developing Implications' and a ‘Positive’ outlook has been assigned for the long-term rating.

CRISIL Ratings has also withdrawn the rating on the bank facilities on receipt of a 'No objection certificate from the banker and debt instruments of JPM, at the company’s request as the Rs460cr bank facilities and debt instruments have been transferred to Jubilant Ingrevia Ltd (JVL), post demerger of the life science business.

The rating withdrawal is based on the company’s request and in line with CRISIL Rating’s policy on withdrawal of ratings.

The ratings were placed on ‘Rating Watch with Developing Implications’ on October 31, 2019 following the announcement of the board’s approval for reorganising the businesses of JLL and demerger of the Life Science Ingredients (LSI) business. With effect from February 1, 2021, lifescience business comprising of speciality chemicals, nutrition and health solutions and life sciences chemicals business has been transferred to Jubilant Ingrevia Limited (JVL). 

Effective this date, all rights, liabilities and obligations therein of life science ingredients business stand fully transferred to JVL. Post demerger, JPM is a pure play pharmaceutical entity, housing specialty pharmaceuticals, contract development and manufacturing (CDMO), Generics, drug discovery and proprietary novel drug businesses.

The ratings reflect JPM’s strong business risk profile backed by diversified revenue, healthy profitability with focus on regulated markets with niche products in the pharmaceuticals segment. The ratings also factor in the company’s adequate financial risk profile, supported by improving capital structure and debt-protection metrics. These strengths are partially offset by product concentration in pharma business, and exposure to regulatory risks and competitive pressures.