Biocon Shares Trade Higher After Board Sets Floor Price For Rs 4,500-Crore QIP
The company set the floor price at Rs 340.20 per share, according to an exchange filing on Monday.
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Shares of Biocon Ltd., surged 1.3% on Tuesday after the company's board of directors approved the floor price for the share sale to the institutional investors as the window of its deal opened. The fundraising of up to Rs 4,500 crore will take place through qualified institutional placement.
The company set the floor price at Rs 340.20 per share, according to an exchange filing on Monday. It may offer a discount of not more than 5% on the floor price.
The biopharmaceutical firm will determine the issue price for the QIP after consulting the book running lead managers appointed for the issue.
On April 23, the company's board had approved raising the amount through issue of securities. The board approved to raise the capital by way of issuance of any instrument or security, including shares, non-convertible debt instruments along with warrants or any other convertible securities by way of qualified institutions placement or rights issue etc.
Biocon Share Price
Shares of Biocon rose as much as 1.30% to Rs 361.90 apiece. They pared gains to trade 0.55% higher at Rs 359.20 apiece, as of 10:10 a.m. This compares to a 0.37% decline in the NSE Nifty 50.
The stock has risen 7.02% in the last 12 months and fallen 1.98% year-to-date. Total traded volume so far in the day stood at 3.43 times its 30-day average. The relative strength index was at 68.25.
Out of the 18 analysts tracking the company, 10 have a 'buy' rating on the stock, three recommend 'hold' and five suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 4.3%.
