Biopharmaceutical major Biocon Ltd. has successfully raised ₹4,500 crore through a Qualified Institutional Placement (QIP)—its first equity fundraising since its 2004 IPO—by issuing 13.63 crore equity shares at ₹330 apiece. The QIP saw overwhelming participation from leading domestic mutual funds and insurance companies, reinforcing investor confidence in Biocon’s long-term growth strategy.
💼 Key Institutional Investors and Allocations
According to regulatory filings, the following funds were allocated shares in the QIP:
- ICICI Prudential Mutual Fund (Various Schemes): 15.38%
- SBI Mutual Fund (Various Schemes): 15.38%
- HDFC Life Insurance Company: 7.77%
- Aditya Birla Sun Life Mutual Fund: 7.22%
- Nippon India Mutual Fund: 7.22%
- Mirae Asset Mutual Fund: 7.22%
- Franklin India Mutual Fund: 6.66%
The issue price represented a slight discount to Biocon’s closing price of ₹347 on the BSE at the time of allotment.
🧾 Use of Proceeds
Biocon will utilize the funds to:
- Repay or prepay select borrowings
- Purchase optionally convertible debentures issued by its subsidiary Biocon Biologics from Goldman Sachs India AIF Schemes
- Support general corporate purposes
🗣️ Leadership Commentary
“The strong response to our QIP reflects deep investor conviction in Biocon’s differentiated strategy and consistent execution,” said Siddharth Mittal, CEO & MD of Biocon Ltd.
📈 Market Impact and Outlook
The QIP strengthens Biocon’s balance sheet and enhances its ability to invest in biosimilars, generics, and research services. HSBC has maintained a ‘Buy’ rating on Biocon with a revised target price of ₹390, citing the QIP as a positive step toward deleveraging.
Stay tuned for updates on Biocon’s biosimilar launches and financial performance.
