NEW DELHI: Biocon Ltd’s subsidiary Biocon Biologics will raise ₹225 crore by selling a 0.85% stake to Tata Capital Growth Fund. The minority stake sale at an equity valuation of $3.5 billion is part of a series of Biocon Biologics’ fund raising this year in a pre-cursor to the listing of the company.
The valuation is higher than the $3 billion valuation at which private equity fund True North had bought a 2.44% stake in the company in January. True North had acquired acquire the stake in the company for ₹536.25 crore, or around $75 million.
“The fund is delighted to partner with Biocon Biologics, a pre-eminent player in Biopharmaceuticals on a global scale, as part of our focus on export-oriented manufacturing in world beating companies," Tata Growth Private Equity managing partner Akhil Awasthi said in a statement.
This is part of the $200-300 million round of fund raising the biologics maker plans to raise before its initial public offering. The IPO is expected within the next two years, chief financial officer M.B. Chinappa had said in January.
With the latest fund raising worth $30 million, Biocon Biologics has raised $105 million so far. Biocon’s stake in the subsidiary is down to 95.25%.
The Kiran Mazumdar Shaw-led Biocon had hived off its biosimilars division into Biocon Biologics in March 2019. The subsidiary, with its own dedicated management, looks at development, manufacturing and commercialization of the biosimilars business.
“We appreciate the conviction of our institutional investors in the ‘value creation’ story of Biocon Biologics as a fully integrated ‘pure-play’ global biosimilars company. This equity infusion is the next step in our journey of unlocking value," Biocon Biologics chief executive officer Christiane Hamacher said.
Biocon shares were trading 1.6% higher at 409.80 on the National Stock Exchange.