Biocon Ltd will combine Biocon Biologics Ltd as an entirely owned subsidiary in a deal valuing the unit at $5.5 billion, the corporate mentioned on Saturday.
Biocon will purchase the remaining stake in Biocon Biologics from Serum Institute Life Sciences, Tata Capital Progress Fund II and Activ Pine LLP through a share swap of 70.28 Biocon shares for each 100 Biocon Biologics shares, at ₹405.78 per share.
It is going to additionally purchase the residual stake held by Mylan Inc. (Viatris) for a complete consideration of $815 million, of which $400 million shall be payable in money and the remainder by a share swap of 61.70 Biocon shares for each 100 Biocon Biologics shares, at ₹405.78 per share.
The mixing of the unit is anticipated to be accomplished by 31 March 2026.
The corporate had constituted a technique committee in Could 2025 to judge a possible merger or public itemizing for the biologics arm.
“After cautious consideration of key parameters akin to strategic alignment, sectoral dynamics, shareholder worth creation, and different related information, the Committee concluded that full integration of Biocon Biologics Restricted with Biocon Restricted presents essentially the most environment friendly and value-accretive path ahead,” the corporate mentioned in a launch.
Biocon’s board has additionally accepted elevating further capital, as much as ₹4,500 crore by certified institutional placement (QIP), topic to shareholder approval. The proceeds of the QIP shall be largely utilised in the direction of the money element payable to Viatris.
Final quarter, Biocon settled its structured debt obligations with Goldman Sachs and Kotak Mahindra Financial institution, in addition to a industrial paper, after elevating ₹4,500 crore by a QIP in June 2025.
The corporate nonetheless has a web debt of $1.2 billion.
Siddharth Mittal and Shreehas Tambe will proceed of their roles as CEO and managing director at Biocon Ltd and Biocon Biologics Ltd, respectively, till completion of the combination course of.
Submit the combination, Tambe will tackle the function of CEO and managing director of the mixed enterprise, whereas Kedar Upadhye will develop into its chief monetary officer. Siddharth Mittal will transition right into a management function inside the group, the corporate mentioned.
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