Biocon Ltd has completed its Qualified Institutions Placement (QIP), raising ₹4,500 crore by issuing approximately 13.6 crore equity shares at a final price of ₹330 per share. The fundraising move, approved by the board and shareholders earlier this year, is part of the company’s broader strategy to reduce debt and consolidate its stake in its key subsidiary, Biocon Biologics.
The QIP saw participation from several prominent domestic institutional investors, including ICICI Prudential Mutual Fund, SBI Mutual Fund, HDFC Life, Nippon Life India, Mirae Asset, and Franklin India. The floor price was initially set at ₹340.20, but the final issue price of ₹330 reflects a discount of around 3 percent, which still attracted strong interest from institutional buyers.
Biocon Chairperson Kiran Mazumdar-Shaw stated that the primary objective of the QIP is to use the proceeds to repay debt obligations and to purchase optionally convertible debentures (OCDs) of Biocon Biologics, which are currently held by Goldman Sachs and other investors. This move is aimed at reducing venture debt and further strengthening Biocon’s control over its biosimilars division.
With the completion of this QIP, Biocon’s leverage is expected to reduce significantly, enhancing its financial flexibility and readiness for future expansion. The company is focusing on scaling up its biosimilars pipeline and increasing its presence in the U.S. market, with key drug applications already filed and awaiting regulatory approval.
Market analysts responded positively to the development. While HSBC retained a ‘Buy’ rating on the stock, it slightly reduced its target price to ₹390 from ₹400, citing the ongoing need to balance growth investments with cost controls and execution risks.
Following the announcement of the QIP’s successful closure, Biocon shares saw a mild uptick, trading between ₹346 and ₹349, reflecting investor confidence in the company's future strategy and financial strengthening.
Biocon is also expected to explore potential restructuring or integration of its biosimilars business, including the possibility of a future public listing of Biocon Biologics. This move would further enhance value creation for shareholders and unlock new growth opportunities.
The QIP was managed by leading investment banks, including BofA Securities, Kotak Mahindra Capital, and Goldman Sachs India. The fundraising marks a pivotal step for Biocon in its journey towards becoming a global leader in affordable biosimilars and advancing its innovation-led growth model.