Biocon Unveils Rs 11,450 Crore Capital Plan For Biologics Integration

Biocon Ltd’s Board on Saturday approved raising up to Rs 4,500 crore via Qualified Institutional Placement in one or more tranches and a Rs 6,950 crore preferential share issue to acquire stakes in Biocon Biologics Ltd., from existing investors, as part of its plan to create a unified global biopharmaceutical leader.

The preferential issue will involve 17.12 crore equity shares of Biocon at a price determined under SEBI norms, aggregating up to Rs 6,950 crore, for consideration other than cash through a swap of BBL securities.

Shares will be allotted to selling shareholders including Mylan Inc., Serum Institute Life Sciences, Tata Capital Growth Fund II, and Activ Pine LLP, subject to shareholder and regulatory approvals.

The Board also approved raising Rs 4,500 crore through issuance of securities, including equity shares, non-convertible debt instruments with warrants, or other eligible securities, via QIP, rights issue, preferential allotment, or private placement. This fundraise will primarily cover cash consideration payable to Mylan.

Additionally, Biocon will increase its authorised share capital from Rs 700 crore to Rs 900 crore and amend its Memorandum of Association accordingly. The Board cleared the issuance of commercial papers worth up to Rs 1,800 crore on a private placement basis to meet interim cash requirements for Mylan’s payment until the fundraise is completed.

To seek shareholder approval for these proposals, Biocon will convene an Extraordinary General Meeting on Dec. 31, via video conferencing. The relevant date for determining the floor price for the preferential issue is Dec. 1.