Biocon Wraps ₹4,500 Cr QIP at ₹330/Share, Eyes Debt Reduction and Growth Surge

Image Source: Business Standard

Biocon Ltd has successfully closed its Qualified Institutional Placement (QIP), raising ₹4,500 crore by issuing shares at ₹330 per equity share—a nearly 3% discount to the floor price of ₹340.20. The fundraising marks a pivotal step in the company’s strategy to strengthen its balance sheet and accelerate growth across biosimilars, generics, and research services.

Key Highlights:

- Issue Price: ₹330 per share, finalized after applying a 3% discount to the SEBI-regulated floor price
- Total Proceeds: ₹4,500 crore via QIP route
- Use of Funds:
- Debt reduction, particularly structured venture debt
- Expansion of biosimilars and generics businesses
- R&D investments and global market penetration
- The QIP saw strong participation from domestic and global institutional investors, reflecting confidence in Biocon’s long-term vision.
- The move aligns with Biocon’s broader capital strategy, which includes potential merger plans for Biocon Biologics and a focus on financial flexibility.
- In Q4 FY25, Biocon reported a 154% YoY jump in net profit to ₹344.5 crore and 12.8% revenue growth to ₹4,417 crore, underscoring operational momentum.

Outlook:

With the QIP now closed, Biocon is poised to enter a new phase of deleveraging and expansion. The capital infusion not only improves its financial health but also positions it to seize emerging opportunities in global healthcare markets.

Sources: Moneycontrol, Economic Times, ET Pharma