Biocon share price is in focus today after the company announced a major restructuring move involving its biologics business. In an exchange filing over the weekend, the Bengaluru-based drug maker announced that it will acquire the remaining stake in Biocon Biologics through a share swap of 70.28 Biocon shares for every 100 Biocon Biologics shares. Biocon holds 78% in Biocon Biologics and at Rs 405.78 per share, the deal values Biocon Biologics at $5.5 billion.
Let’s take a look at what this merger means and why the stock is likely to stay in focus.
Biocon Biologics to become a 100% subsidiary
Biocon has decided to bring its biologics arm completely under its umbrella. This means Biocon Biologics, which was earlier jointly owned with partners such as Mylan (now Viatris), Serum Institute Life Sciences, Tata Capital Growth Fund II and Activ Pine LLP, will now be fully absorbed into the listed company. The board says this integration will streamline operations and give Biocon greater control over the unit.
Large share swap at a fixed price
To complete the merger, Biocon will issue new shares to the existing shareholders of Biocon Biologics. These swaps are pegged at around Rs 405 per Biocon share.
In simple terms, partners holding Biocon Biologics shares will surrender them and receive Biocon’s listed shares in return. This process will lead to a meaningful dilution in Biocon’s overall equity base.
Cash payment required for Mylan’s stake
While most partners are exiting through share swaps, the portion owned by Mylan requires a part-cash payout. Biocon needs about $400 million (roughly Rs 3,600 crore) to settle this component. The remaining part of Mylan’s holding will also be swapped for Biocon shares.
Big fundraise planned through QIP
The board has cleared a plan to raise up to Rs 4,500 crore via a Qualified Institutional Placement. The fundraising will dilute existing shares further but is necessary to complete the deal.
Biocon Biologics valued at $5.5 billion
The merger pegs the biologics arm at a valuation of around $5.5 billion. This number is based on the pricing used for the share swaps and other consideration structures.
Biocon share price
In the last 5 days, the share price of Biocon fell 2%. Th company delivered a return of 6% so far in 2025.