Shares of Biocon Ltd. surged by almost 3% to touch a day’s high of Rs 376.80 on 26 July after the company announced that it is likely to raise $500 million, or over Rs 4,000 crore, by selling shares to institutional investors.

The funds raised through a Rs 4,000 crore QIP are anticipated to be utilized for debt servicing purposes, with the launch expected to begin next month. BofA Securities and Kotak Securities may be appointed as bankers.

On 8 August 2024, all members of the board of directors will assemble to evaluate results for June’s quarter and may likely deliberate over an option related to raising additional funds.

Last year, Biocon raised Rs 2,250 crore by selling a 10% stake in its research arm, Syngene. Those proceeds were utilized mainly to decrease financial costs associated with gap financing regarding the Viatris agreement.

Biocon’s Q4FY24 results showed a substantial drop of 57% in its total net profit on a yearly basis to Rs 135.5 crore. The overall sale from operations in the fourth quarter experienced an increment of 4% to Rs 3,917 crore.

The company has identified weight loss products, including semaglutide, as key growth drivers.

By the end of the June quarter, Biocon’s promoters held a 60.64% stake in the company.

At 3:30 PM, the shares of Biocon Ltd. closed 1.91% higher at Rs 368.60 on BSE.

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