It marks the company’s first equity funding since its initial public offering in 2004.
Biocon issued 136,363,635 equity shares of face value Rs 5 each to eligible qualified institutional buyers at an issue price of Rs 330 per equity share (including a premium of Rs 325 per equity share), according to a company statement.
The QIP, which opened on June 16 and closed on June 19, witnessed robust investor interest from a diverse group of domestic and international investors, the company said.
“The strong response to our QIP reflects deep investor conviction in Biocon’s differentiated strategy and consistent execution,” said Siddharth Mittal, CEO and managing director, Biocon. “This capital raise further strengthens our balance sheet, enabling us to invest in innovation, expand global access to lifesaving biopharmaceuticals, and advance our purpose of delivering affordable healthcare solutions that address pressing health inequities worldwide.”
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The company said its final order book was well diversified in terms of investor type across domestic mutual funds, insurance companies and foreign institutional investors.The leading investors who participated in the issue included SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Life Insurance, Nippon India Mutual Fund, Mirae Asset Mutual Fund, Aditya Birla Mutual Fund, Franklin Templeton, SBI General Insurance, Government Pension Fund Global and Blackrock.The proceeds from the QIP will be utilised for purchase of outstanding optionally convertible debentures issued by the company’s subsidiary Biocon Biologics from Goldman Sachs India AIF Scheme – 1 and Goldman Sachs India Alternative Investment Trust AIF Scheme – 2. The funds will also be used for repayment, pre-payment or redemption of certain outstanding financial instruments issued and/or borrowings availed by the company, to meet other financial commitments and for general corporate purposes, said the statement.
The post-issue shareholding of the promoter and promoter group stands at 54.45%.
Kotak Mahindra Capital, BofA India Securities and Goldman Sachs (India) Securities acted as book running lead managers to the QIP.
