Biocon Limited announced on March 03, 2026, the completion of the acquisition of all outstanding Optionally Convertible Redeemable Non-Cumulative Preference Shares (OCRPS) in its wholly owned subsidiaries, Biocon Biosphere Limited (BBSL) and Biocon Pharma Limited (BPL). This transaction solidifies Biocon’s 100% control over both entities. The total consideration amounted to ₹115.34 crores for BBSL and ₹200 crores for BPL, fulfilling ongoing business and capital requirements for both subsidiaries.
Biocon Bolsters Control Over Key Subsidiaries
Biocon Limited has finalized the acquisition of the remaining preference share capital in two of its key subsidiaries, Biocon Biosphere Limited (BBSL) and Biocon Pharma Limited (BPL), effective March 03, 2026. This strategic move ensures that Biocon now holds 100% of the paid-up share capital, including all outstanding Optionally Convertible Redeemable Non-Cumulative Preference Shares (OCRPS), in both companies.
Transaction Details and Consideration
The acquisition involved two separate transactions, both executed at an arm’s length basis:
- Biocon Biosphere Limited (BBSL): Biocon acquired 11,53,44,285 OCRPS at an issue price of Rs. 10/- each. The total acquisition cost was Rs. 1,15,34,42,850/-. This consideration comprised Rs. 20,00,00,000/- in cash and a settlement of an earlier loan provided by Biocon to BBSL, along with accrued interest, totaling Rs. 95,34,42,850/-. The primary purpose was to meet BBSL’s ongoing working capital and capital expenditure needs.
- Biocon Pharma Limited (BPL): Biocon acquired 20,00,00,000 OCRPS, also at Rs. 10/- each. The total cash consideration for this investment was Rs. 2,00,00,00,000/-, aimed at supporting BPL’s working capital and general corporate requirements.
Subsidiary Background and Industry Alignment
Both target entities operate within the Pharmaceuticals industry and are wholly owned subsidiaries based in Bengaluru, India.
BBSL’s Profile: Incorporated in December 2019, BBSL is engaged in the manufacturing of API and Generic formulations, utilizing Greenfield facilities in Vizag for fermentation and in Bengaluru for other capabilities. Its turnover for FY 2024-25 reached Rs. 130 Mn.
BPL’s Profile: Incorporated in October 2014, BPL focuses on developing and manufacturing generic formulations for global markets, particularly in the US and Europe. BPL has manufacturing facilities dedicated to oral solid dosages. Its latest reported turnover for FY 2024-25 was significantly higher at Rs. 9,825 Mn.
The company confirmed that as both entities are wholly owned subsidiaries, these transactions are exempt from related party transaction norms under Regulation 23(5) of the applicable regulations, and the terms reflect an arm’s length basis.
Source: BSE
