Biocon’s board has greenlit the acquisition of equity shares in Biocon Biologics Limited (BBL) from multiple entities. The board has also approved raising funds via issuance of equity shares and other securities. The preferential issue aims to raise ₹6,950 Crores, while up to ₹4,500 Crores will be raised through other methods. The company also approved issuing commercial papers of up to ₹1,800 Crores.
Biocon to Acquire Biocon Biologics Shares
Biocon has announced its Board of Directors’ approval for the acquisition of equity shares of its subsidiary, Biocon Biologics Limited (BBL). The shares will be acquired from Mylan Inc., Serum Institute Life Sciences Private Limited, Tata Capital Growth Fund II, and Activ Pine LLP. This transaction is subject to necessary approvals.
Details of Share Acquisition
The acquisition involves issuing 17,12,79,553 equity shares of Biocon, each with a face value of ₹5, on a preferential basis. This is to be done at a price not less than that determined by regulations, aggregating up to ₹6,950 Crores. This preferential issue is for consideration other than cash, involving a swap of securities of BBL.
Fund Raising Initiatives
The Board has also approved raising funds up to ₹4,500 Crores through various instruments, including equity shares and non-convertible debt instruments. The funds will be raised via qualified institutions placement (QIP), rights issue, or other methods. The fund raising is mainly towards cash consideration payable to Mylan.
Commercial Paper Issuance
Biocon’s board has approved the issuance of Commercial Papers for up to ₹1,800 Crores in one or more tranches on a private placement basis. This move is intended to facilitate cash remittance to Mylan in the interim, pending the completion of the larger fund raise.
Extraordinary General Meeting
To seek shareholder approval for the above matters, an Extra-Ordinary General Meeting (EGM) of the shareholders is scheduled for December 31, 2025. The meeting will be held via video conferencing.
Source: BSE