Biocon Launches Rs 4,500 Crore QIP to Strengthen Finances, Issue 11.6% of Equity Base
Biocon, the leading Indian biopharmaceutical company, on Monday launched a qualified institutions placement (QIP) to raise Rs 4,500 crore, aiming to bolster its balance sheet and support strategic financial objectives. As part of the move, the company will issue up to 139 million new equity shares, representing 11.6% of its existing share capital.
The floor price for the QIP has been fixed at Rs 323.20 per share, as per a stock exchange filing. This is at a discount to Biocon’s last closing price of Rs 357.30, which pegs its market capitalisation at Rs 42,900 crore.
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The final issue price for the QIP will be decided on Thursday, while trading in the newly issued shares is expected to begin from Tuesday next week.
The fundraise follows the company board’s earlier approval on April 23 to raise up to Rs 4,500 crore via QIP. The proposal received shareholder approval on June 4 through postal ballot.
According to Biocon, the QIP proceeds will be utilised primarily to purchase outstanding optionally convertible debentures issued by its subsidiary, Biocon Biologics, along with debt repayment and general corporate purposes.
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In its Q4FY25 earnings call, Kedar Upadhye, CFO of Biocon Biologics, revealed that the subsidiary had a net debt of US$1.2 billion, excluding structured instruments.
Meanwhile, Siddharth Mittal, CEO and MD of Biocon, noted that the first tranche of the QIP was expected to be completed by mid-June.
The move reflects Biocon’s focus on long-term financial sustainability while maintaining growth momentum in the global biologics and biosimilars space.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
