Biocon Opens Rs 4,500-Crore QIP To Fund Biologics Integration

Biocon Ltd. on Monday opened its qualified institutional placement of shares to raise up to Rs 4,500 crore to fund the integration of Biocon Biologics Ltd.

The board approved a floor price of Rs 387.74 per equity share for the QIP, according to a stock exchange filing. The final issue price will be determined by the company in consultation with the book running lead managers appointed for the QIP.

Of the total proceeds via the share sale, up to Rs 3,620 crore will be utilised mainly towards payment to Mylan Inc. (Viatris).

The company last month signed a deal to acquire the stake in Biocon Biologics held by Mylan for a total consideration of $815 million, of which $400 million will be payable in cash and $415 million through a share swap of 61.70 Biocon shares for every 100 Biocon Biologics shares.

The funds from QIP worth up to Rs 410 crore will be used for repayment of debt availed for acquisition of compulsorily convertible debentures of Biocon Biologics. The rest Rs 50 crore will go for general corporate purposes.

Kotak Mahindra Capital Co., HSBC Securities & Capital Markets Pvt., JPMorgan India Pvt. and Morgan Stanley India Co. are the book running lead managers.

The Biocon-Biologics merger deal will unlock growth opportunities and create value for the company's shareholders, according to Kiran Mazumdar-Shaw, Chairperson and Managing Director of India's largest biopharmaceuticals company. With the deal, the Bengaluru-based Biocon will likely become a unified global biopharma leader.

The integration process is expected to be completed no later than March 31, 2026. This integration marks a pivotal step in combining the businesses to leverage the global commercial infrastructure, simplifying the corporate structure and strengthening Biocon's global position to lead in diabetes, oncology, and immunology — therapeutic areas that together account for nearly 40% of global pharmaceutical revenues, according to a earlier statement.

Shares of Biocon settled 2% lower at Rs 372.05 o the BSE, ahead of the announcement, compared to a 0.36% gain in the benchmark Sensex. The stock is up 2.76% on a 12-month basis.