Biocon surges 3%

Biocon announced yesterday that the Board of its subsidiary Biocon Biologics, has approved a primary equity investment by Abu Dhabi based ADQ , one of the region’s largest holding companies.

As per the terms of the proposed agreement, ADQ will invest Rs 555 crore for a 1.80% minority stake in the biosimilar business, valuing Biocon Biologics at a post money valuation of $4.17 billion.

Biocon Biologics had raised over $255 million from global marquee investors from Jan to Nov 2020. The company has raised $75 million through a primary equity infusion by True North Fund for a 2.44% stake; Tata Capital Growth Fund picked up a 0.85% stake for $30 million. Goldman Sachs made a capital injection of $150 million in exchange for Optionally Convertible Debentures of Biocon Biologics.

The stock price rose almost 3% to Rs.467.70 with an over 1-time surge in volumes. Its 52-week high is at Rs.487.70.