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Biocon Biologics India to allot 88.30 lakh equity shares to Tata Capital Growth Fund II

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Capital Market
Last Updated : Sep 04 2020 | 4:16 PM IST

Biocon on Thursday announced that the board of its subsidiary, Biocon Biologics India, has approved the allotment of 88,30,456 equity shares for Rs 254.80 each to Tata Capital Growth Fund II.

In July 2020, the board of Biocon Biologics India approved a primary equity investment by Tata Capital Growth Fund. As per the terms of the proposed agreement, Tata Capital will invest Rs 225 crore for a 0.85% minority stake in the biosimilar business, valuing Biocon Biologics at an equity valuation of Rs 26,250 crore, or $3.5 billion, and an enterprise valuation of Rs 30,400 crore, or $4 billion. Post the completion of this transaction, Biocon will hold 95.25% stake in Biocon Biologics.

Biocon Biologics is engaged in developing affordable biosimilars aimed at expanding patient access to therapies across the world. The equity infusion by Tata Capital will enable Biocon Biologics' future growth through prudent capital allocation, while it continues its investments in R&D and manufacturing to meet the growing demands of patients worldwide.

Shares of Biocon slipped 0.94% to Rs 421.40 on the BSE. It traded in the range of 418.80 and 434.15 during the day.

Biocon is a fully integrated, innovation-led global biopharmaceuticals company. Its consolidated net profit fell 28% to Rs 149 crore on a 15% rise in revenue from operations to Rs 1671 crore in Q1 FY21 over Q1 FY20.

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First Published: Sep 04 2020 | 3:09 PM IST

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