Biocon raises ₹4,150 crore via QIP, issues majority shares to SBI, ICICI funds

Biocon Ltd. informed the exchanges that it has completed its fund raising exercise on Thursday, January 15, by issuing shares to eligible shareholders through a Qualified Institutional Placement (QIP).The board of Biocon has approved the issue of 11.26 crore equity shares of face value of ₹5 each to eligible institutions. Biocon has raised a sum of ₹4,150 crore through the QIP.
Price of the QIP has been fixed as ₹368.35 per share, which is a 2.8% discount to Wednesday’s closing price.
Funds belonging to SBI, ICICI and Mirae Mutual Fund have been issued nearly two-thirds of the shares reserved for the QIP.

Funds	% Of QIP
SBI MF (Various Schemes)	29.51
ICICI Prudential MF (Various Schemes)	29.51
Mirae Asset MF (Various Schemes)	8.43

After the issue of shares, Biocon’s total paid-up equity share capital now stands at ₹810.45 crore, comprising of 162.09 crore shares, from ₹754.12 crore, comprising of 150.82 crore shares earlier.Proceeds from this QIP will used in the payment of the cash consideration to Mylan Inc. for the acquisition of the Biocon Biologics shares.

The company will also use part of the proceeds to repay debt availed for acquiring the Compulsorily Convertible Debentures (CCDs) of Biocon Biologics, and for general corporate purposes.

Biocon intends to make Biocon Biologics a 100% subsidiary by issuing shares to its existing shareholders. As part of this, it will be paying $400 million to Mylan for which it had taken approval to raise up to ₹4,500 crore through various methods.

Shares of Biocon ended 0.4% higher on Wednesday at ₹378.9. The stock has remained flat over the last 12 months.