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Last Updated : Aug 21, 2019 09:01 PM IST | Source: Moneycontrol.com

Temasek, True North and CPPIB in investment talks for stake in Biocon arm: Report

Founded in 2016, Biocon Biologics India (BBIL) is reported to be the fastest-growing division within Biocon, with a 97 percent growth in revenue to Rs 1,516 crore in FY19 compared to FY18.

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Three parties--Temasek, True North and Canadian Pension Plan Investment Board (CPPIB)-- are in separate discussions to invest $300 million in Biocon Biologics India Ltd (BBIL) for a minority stake, reported Economic Times.

Founded in 2016, BBIL a wholly-owned subsidiary of Biocon, which some claim is valued above the Biocon's Rs 26,000-crore market cap, but this hasn’t been verified. The subsidiary is reported to be the fastest-growing division within Biocon, with a 97 percent growth in revenue to Rs 1,516 crore in FY19 compared to FY18.

The parent company has also reported strong financials and are already backed by two of the three potential investors—Singapore state investment company, Temasek, and Indian private equity firm, True North.

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None of the parties has commented on the speculation. But if the deal comes through, this will be the third time that True North will be backing a Kiran Mazumdar-Shaw entity, the report pointed out.

A source to the daily said that "The parent Biocon is increasingly becoming a holding company as it seeks to unlock value across its arms through demergers and listings."

"With expansion plans, new greenfield units, the growth capital is for future earnings and the pipeline… Both the funds have made handsome IRRs (internal rates of return) with Syngene and that gives extra confidence."

A couple of months back, Biocon's chairperson and managing director, Kiran Mazumdar Shaw, had stated to CNBC that IPO of its biologics division is likely in the next few years.

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First Published on Aug 21, 2019 08:57 pm
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