Biocon Opens ₹4,500 Crore QIP with Floor Price Fixed at ₹340.20 Per Share

16 Jun 2025 , 09:52 PM

Biocon Ltd. has opened its Qualified Institutional Placement (QIP) to raise up to ₹4,500 crore, marking a strategic step toward improving its financial position. The floor price for the issue has been set at ₹340.20 per share, in line with the pricing formula prescribed by SEBI regulations.

The Bengaluru-based biopharmaceutical firm plans to utilise the proceeds from the QIP primarily to buy out optionally convertible debentures previously issued by its subsidiary, Biocon Biologics Ltd., to alternative investment funds managed by Goldman Sachs. The company is aiming to consolidate ownership and simplify the capital structure of its biologics arm.

Beyond the acquisition, part of the funds will be directed toward reducing existing debt, redeeming financial instruments, and addressing other financial obligations aligning with Biocon’s broader efforts to strengthen its balance sheet and reduce financing costs.

The capital raise was first cleared by the board in April and subsequently received shareholder approval via postal ballot on June 4. The company has also implemented trading restrictions on its securities, in compliance with insider trading norms during the issuance period.

Biocon has appointed Kotak Mahindra Capital, Goldman Sachs (India), and BofA Securities India as lead advisors for the transaction. The QIP is expected to help the company achieve greater financial flexibility while paving the way for long-term capital efficiency.

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