Biocon to Launch ₹4,500 Crore QIP Soon; Eyes Debt Reduction and Stronger Balance Sheet

Biocon Ltd, the Bengaluru-based global biopharmaceutical company led by Kiran Mazumdar-Shaw, is preparing to launch a qualified institutional placement (QIP) worth up to ₹4,500 crore, possibly as early as this week. The capital infusion is aimed at reducing the firm’s existing debt burden and strengthening its financial position, according to sources close to the matter.

“The deal has been in the works for a while and may be launched very soon,” said one of the sources quoted by Moneycontrol.

Three prominent investment banks—Kotak Mahindra Capital, Goldman Sachs, and BofA Securities—have reportedly been roped in as advisors for this fundraise. While Biocon and the banks have chosen not to comment officially, this move marks a significant financial step for the company.

Board Approved ₹4,500 Crore Capital Raise Earlier

Biocon’s board had approved the capital raise on April 23, allowing the company to raise funds through various instruments such as QIPs, rights issues, or other legally permitted routes. These may be executed in one or more tranches, depending on market conditions and investor appetite.

On May 14, during an interview with Moneycontrol, Biocon’s Executive Chairperson Kiran Mazumdar-Shaw stated that the company is on a strong growth path, and reducing debt is a key part of their financial strategy.
“Now that we are on a strong growth trajectory, why should we have the overhang of structured debt?” Shaw remarked.
She added that converting venture debt into promoter equity would lead to a much healthier balance sheet.

IPO Plans Uncertain, Merger a Possibility

While there had been speculation around an IPO for Biocon Biologics, the company’s biosimilars arm, Shaw clarified that current market conditions don’t support an IPO.
“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 explained.

However, she did not rule out a public offering in the future.
“If things suddenly change and it makes it very attractive to have an IPO, we will have an IPO. Otherwise, we will merge,” she said.

Strong Q4 FY25 Performance Boosts Confidence

Biocon has recently reported a robust financial performance for Q4 FY25, which adds credibility to its decision to raise capital.

• Net profit after exceptional items rose by 154% to ₹344.5 crore, compared to ₹135.5 crore in the same quarter last year.
• Revenue increased by 12.8% YoY to ₹4,417 crore, beating analysts’ expectations of ₹4,168.6 crore.
• EBITDA saw a 17.7% YoY growth to ₹1,078.2 crore, up from ₹915.9 crore last year.

These numbers reflect Biocon’s improving operational efficiency and growing market presence, reinforcing investor confidence as it prepares for this major fundraising move.

Conclusion

With a planned ₹4,500 crore QIP, Biocon is taking a bold step to strengthen its balance sheet and position itself for future growth. Backed by leading investment banks and a strong financial performance in Q4, the company is poised to make a strategic shift in its capital structure while keeping flexible options open for its biosimilars business.

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