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HomeMarket NewsBiocon launches ₹4,500 crore QIP, sets floor price at ₹340.20/share
Biocon has launched a ₹4,500 crore Qualified Institutional Placement, setting the floor price at ₹340.20 per share. Proceeds will go towards debt reduction and acquiring debentures.
Biocon on Monday launched its Qualified Institutional Placement (QIP) issue to raise ₹4,500 crore, with the floor price set at ₹340.20 per share, as per the pricing formula under SEBI regulations.
The company may offer up to a 5% discount on this floor price while finalising the issue price in consultation with book-running lead managers.
The net proceeds from the QIP will be used to purchase outstanding optionally convertible debentures issued by its subsidiary Biocon Biologics from Goldman Sachs' AIF schemes.
The funds will also help in repaying or prepaying existing borrowings, redeeming financial instruments, and meeting other financial commitments.
The issue was approved by the board in April and received shareholder approval through a postal ballot on June 4. Trading in Biocon securities remains restricted due to the insider trading code in place during the issue.
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Kotak Mahindra Capital, Goldman Sachs (India), and BofA Securities India are advising Biocon on the capital raise, which is aimed at paring down debt and bolstering the Bengaluru-based company's balance sheet.
Ahead of the announcement, shares of Biocon closed 0.44% higher at ₹356.95 on the NSE.
