OdishaPlus Bureau
Biocon Biologics subsidiary to Biocon Ltd. 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 fund raising this fiscal year 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.
In January, chief financial officer M.B. Chinappa said, “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.
Biocon Biologics has raised $105 million so far. Biocon’s stake in the subsidiary is down to 95.25%.
“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.