Biocon Ltd, India's biggest biopharmaceutical company and fastest-growing in the sector, raised ₹4,500 crore (₹45 billion) in a Qualified Institutional Placement (QIP)–its biggest equity raise since it went public in 2004. The QIP, which closed on June 19, 2025, saw record interest from Indian and global institutional investors, witnessing robust market confidence in Biocon's growth approach and financial strength.
Key Highlights:
-
Biocon issued 13.63 crore equity shares of ₹330 each, a small discount to the prevailing market price, raising the paid-up share capital to ₹668.48 crore.
-
The QIP received marquee investors like ICICI Prudential Mutual Fund, SBI Mutual Fund, HDFC Life Insurance, Aditya Birla Sun Life, Nippon India MF, Mirae Asset, and Franklin Templeton. ICICI Prudential MF and SBI MF bought 15.38% each of the QIP, and HDFC Life bought 7.77%.
Proceeds will be utilized to:
-
Repay or prepay specific borrowings and financial instruments.
-
Purchase optionally convertible debentures of Biocon Biologics, held by Goldman Sachs and others.
-
For furthering general corporate goals and future growth initiatives.
-
The QIP strengthens Biocon's balance sheet, providing it with the financial independence to expand its biosimilars business, accelerate innovation, and expand global access to affordable biopharmaceuticals.
HSBC reaffirmed its 'buy' on Biocon, lowering its target price to ₹390 (from ₹400), crediting the QIP's positive impact on debt reduction but emphasizing near-term EPS dilution due to higher equity and ongoing investments.
The promoter group's shareholding in the company stands at 54.45% post-issue.
Biocon's shares responded positively, rising 0.59% to ₹350.65 on the BSE, following a 4.5% rise in the previous month, indicating the optimism of investors. CEO Siddharth Mittal commented, "The high acceptability of our QIP indicates investor trust in Biocon's differentiation strategy and execution excellence. The infusion of capital will help us invest in innovation and build global access to strategic biopharmaceuticals.".
Source: The Hindu BusinessLine, Business Today, CNBC-TV18, HDFC Sky, NDTV Profit.
