Biocon Ltd will integrate Biocon Biologics Ltd as a wholly owned subsidiary in a deal valuing the unit at $5.5 billion, the company said on Saturday.
Biocon will acquire the remaining stake in Biocon Biologics from Serum Institute Life Sciences, Tata Capital Growth Fund II and Activ Pine LLP via a share swap of 70.28 Biocon shares for every 100 Biocon Biologics shares, at ₹405.78 per share.
It will also acquire the residual stake held by Mylan Inc. (Viatris) for a total consideration of $815 million, of which $400 million will be payable in cash and the rest through a share swap of 61.70 Biocon shares for every 100 Biocon Biologics shares, at ₹405.78 per share.
The integration of the unit is expected to be completed by 31 March 2026.
The company had constituted a strategy committee in May 2025 to evaluate a potential merger or public listing for the biologics arm.
“After careful consideration of key parameters such as strategic alignment, sectoral dynamics, shareholder value creation, and other relevant data, the Committee concluded that full integration of Biocon Biologics Limited with Biocon Limited offers the most efficient and value-accretive path forward,” the company said in a release.
Biocon’s board has also approved raising additional capital, up to ₹4,500 crore through qualified institutional placement (QIP), subject to shareholder approval. The proceeds of the QIP will be largely utilised towards the cash component payable to Viatris.
Last quarter, Biocon settled its structured debt obligations with Goldman Sachs and Kotak Mahindra Bank, as well as a commercial paper, after raising ₹4,500 crore through a QIP in June 2025.
The company still has a net debt of $1.2 billion.
Siddharth Mittal and Shreehas Tambe will continue in their roles as CEO and managing director at Biocon Ltd and Biocon Biologics Ltd, respectively, until completion of the integration process.
Post the integration, Tambe will take on the role of CEO and managing director of the combined business, while Kedar Upadhye will become its chief financial officer. Siddharth Mittal will transition into a leadership role within the group, the company said.
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