Biocon Launches ₹4,500 Crore QIP to Strengthen Balance Sheet and Reduce Debt

Biocon Ltd. has officially launched its Qualified Institutional Placement (QIP) to raise up to ₹4,500 crore, setting the floor price at ₹340.20 per share in accordance with SEBI’s pricing guidelines.

The capital-raising initiative was approved by Biocon’s Board in April and received shareholder approval via postal ballot on June 4. Trading in Biocon’s securities remains restricted under the company’s insider trading policy for the duration of the QIP.

Kotak Mahindra Capital, Goldman Sachs (India), and BofA Securities India are acting as financial advisors for the transaction. The move is part of Biocon’s broader strategy to deleverage its balance sheet and enhance financial flexibility as it continues its growth trajectory.

Use of QIP Funds

Proceeds from the QIP will be primarily used to acquire outstanding optionally convertible debentures previously issued by Biocon Biologics, a wholly owned subsidiary, to Goldman Sachs’ Alternative Investment Funds. Additional funds raised will support repayment or prepayment of existing debt, redemption of financial instruments, and other financial obligations.

Also Read: Capri Global Raises ₹2,000 Crore via QIP to Power Expansion and Tech Investment 

Management Take on Q4FY25 Earnings

Kiran Mazumdar-Shaw, Chairperson, Biocon Group, said, “The Biocon Group ended the year with a strong performance across its businesses. The launch of Liraglutide in the UK market heralded our entry into the GLP-1 therapy segment. Our Biosimilars continue to build impressive shares in global markets, with four biosimilars recording sales of USD 200 million each in FY25. We also launched our fifth biosimilar product Yesintek™ (bUstekinumab) in the U.S. market.”

“This quarter marked the expansion of Syngene’s biologics manufacturing footprint through an acquisition of a state-of-the-art manufacturing facility in the U.S. “FY25 has been a year of consolidation and transition. We are now on a path of accelerating growth with a commitment to innovation, digital augmentation and operational excellence.”

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.