Biocon Limited, a Bengaluru-based global biopharmaceutical company, successfully raised Rs 4,500 crore (approximately USD 523 million) through a Qualified Institutional Placement (QIP), marking its first equity fundraising since its 2004 IPO. The QIP, open from June 16 to June 19, 2025, involved issuing 13,63,63,635 equity shares with a face value of Rs 5 each at Rs 330 per share, including a premium of Rs 325. The issue price was a slight discount to the closing price of Rs 347 on June 19, 2025. The QIP saw strong demand from diverse domestic and international investors, including SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Life Insurance, Nippon India Mutual Fund, Franklin Templeton, Government Pension Fund Global, and Blackrock, reflecting confidence in Biocon’s growth strategy.
The proceeds will be used to purchase outstanding optionally convertible debentures issued by Biocon’s subsidiary, Biocon Biologics, from Goldman Sachs India AIF Scheme-1 and Goldman Sachs India Alternative Investment Trust AIF Scheme-2, repay or redeem certain borrowings and financial instruments, meet other financial commitments, and support general corporate purposes. This fundraising strengthens Biocon’s balance sheet, reducing its net debt of approximately USD 1.2 billion (excluding structured instruments) and enabling investment in biosimilars, innovation, and global expansion. The QIP was advised by Kotak Mahindra Capital, Goldman Sachs (India), and BofA Securities. Biocon’s board approved the fundraise on April 23, 2025, with shareholder approval via postal ballot on June 4, 2025. HSBC maintained a ‘buy’ rating on Biocon shares post-QIP, with a revised target price of Rs 390, citing reduced leverage but noting biosimilar scale-up as a key trigger.