Global biopharmaceutical major Biocon Ltd, led by Kiran Mazumdar-Shaw, is set to launch a Qualified Institutional Placement (QIP) worth up to ₹4,500 crore, possibly as early as this week, according to multiple reports. The capital raise is aimed at reducing the company’s ₹1.2 billion net debt and bolstering its financial health.
Top Investment Banks Advising the Deal
The QIP will be advised by a trio of global investment banks:
- Kotak Mahindra Capital
- Goldman Sachs
- BofA Securities
These firms are expected to play a key role in structuring and executing the offering.
Board Approval and Strategic Intent
Biocon’s board had approved the fundraising plan on April 23, 2025, allowing for capital infusion via QIP, rights issues, or other permissible routes. In a May 14 interview, Executive Chairperson Kiran Mazumdar-Shaw emphasized the company’s intent to convert venture debt into promoter equity, thereby creating a healthier balance sheet.
“Now that we are on a strong growth trajectory, why should we have the overhang of structured debt?” Shaw said.
Strong Q4 FY25 Performance Boosts Confidence
Biocon reported a robust Q4 FY25, with:
- Net profit rising 154% YoY to ₹344.5 crore
- Revenue up 12.8% YoY to ₹4,417 crore
- EBITDA increasing 17.7% YoY to ₹1,078.2 crore
These results have reinforced investor confidence ahead of the QIP launch.
IPO or Merger for Biocon Biologics?
Shaw also hinted at a potential merger of Biocon Biologics with the parent company, citing unpredictability in the IPO market.
“If things suddenly change and it makes it very attractive to have an IPO, we will have an IPO. Otherwise, we will merge,” she noted.
