Biocon opens QIP offering, sets floor price at Rs 340.20 per share

Biocon has a net debt of around $1.2 billion, which excludes structured instruments

Biocon Ltd on Monday opened its Qualified Institutional Placement (QIP) issue, following approvals from its Board of Directors and shareholders. The decision was formalized at a meeting of the Fund Raising Committee

The company has set the floor price for the issue at Rs 340.20 per equity share, in line with the pricing formula prescribed under Regulation 176 of SEBI’s Issue of Capital and Disclosure Requirements (ICDR) Regulations. The relevant date for determining this floor price has also been fixed as June 16, 2025.

Moneycontrol had reported earlier on June 16 that Biocon would launch the QIP shortly," The QIP aims to bolster Biocon’s financial flexibility and fuel its growth plans across biosimilars, generics, and research services.

On April 23, Biocon's board approved raising up to Rs 4,500 crore through the issue of securities via methods including qualified institutional placements, rights issues, or other permissible routes, in one or more tranches.

Later, on May 14, in an interview to Moneycontrol, executive chairperson Shaw said the company aims to close the fundraising exercise in three to four months.

“Now that we are on a strong growth trajectory, why should we have the overhang of structured debt?” she said. “If we convert that venture debt into promoter equity, you have a much healthier balance sheet.”

Biocon has a net debt of around $1.2 billion, which excludes structured instruments.

“The IPO market is not very predictable right now,” Shaw elaborated in the interview to Moneycontrol. “If we are not going to get value for an IPO, then why should we do it? If a merger is a better option, we will do a merger.” She was referring to the potential merger of its biosimilars arm, Biocon Biologics, with the parent company.

“We are just being transparent,” she said. “If things suddenly change and it makes it very attractive to have an IPO, we will have an IPO. Otherwise, we will merge.”

Biocon registered a healthy set of numbers in the fourth quarter of FY25, with net profit after exceptional items rising by 154 percent to Rs 344.5 crore, compared to Rs 135.5 crore a year earlier. Revenue rose by 12.8 percent year-on-year to Rs 4,417 crore, beating expectations of Rs 4,168.6 crore. On the other hand, EBITDA increased by 17.7 per cent YoY to Rs 1,078.2 crore versus Rs 915.9 crore in the same quarter last year.