Indian biopharmaceutical firm Biocon Ltd is looking to raise $523 million ( ₹4,500 crore) by selling 11.6% stake through a qualified institutional placement (QIP) issue, showed a term sheet.
The company has set a floor price of ₹340.20 per equity share, and an indicative floor price of ₹323.20 per equity share, according to the term sheet reviewed by Mint.
The funds will be used to purchase outstanding optionally convertible debentures issued by the company’s subsidiary Biocon Biologics from Goldman Sachs AIF schemes, and to repay the company’s debts.
Biocon has a net debt of about $1.2 billion, excluding structured instruments.
BofA Securities India Ltd, Kotak Mahindra Capital, and Goldman Sachs (India) Securities Private Ltd are acting as lead managers to advise Biocon on the fundraise.
Also read | Biocon to evaluate merger with subsidiary Biologics
The company launched the QIP after market hours on Monday. Biocon’s shares closed at ₹356.95 on the NSE on Monday, up 0.44%. The company’s market cap is at ₹428.13 billion.
Biocon did not immediately respond to a query emailed by Mint.
On 23 April, the company’s board had approved raising ₹4,500 crore by issuing securities via QIPs, rights issue, or other permissible routes, in one or more tranches.
The company had sought shareholder approval for the fundraise via a postal ballot dated 2 May 2025. It had earlier said that it plans to complete the first tranche of equity sale by mid-June 2025.
“These funds will be used to meet financial commitments related to Biocon and its subsidiaries,” the company’s managing director and chief executive officer Siddharth Mittal had told Mint in an earlier interview.
Read this | Biocon Biologicals’ IPO only after integrating Viatris: CEO
Biocon’s board has a committee to evaluate strategic restructuring options, including a merger of its biosimilars arm Biocon Biologics Ltd with Biocon Ltd. The company had previously expressed plans to list the subsidiary on the stock exchanges.
“…given the market volatility that we are seeing on the IPO front, the board was of the opinion that we should look at other strategic options, which also includes evaluating a merger,” Kiran Mazumdar-Shaw, chairperson, Biocon Group, told investors in a post-earnings earnings call last month.
The company’s consolidated revenue for FY25 was ₹16,470 crore, up 5% from the previous year, while it reported an Ebitda of ₹4,374 crore and a net profit of ₹1,013 crore.
And read | Serum arm to double investment in Biocon unit
