Shares of Biocon Ltd fell 1% after hitting a day’s high of Rs 395.60 on 8th December, following the company’s announcement that it will convert its subsidiary, Biocon Biologics, into a 100% wholly owned unit.

The company said it will issue shares to Biocon Biologics’ shareholders at Rs 405.6 per share, a 3.3% premium to Biocon’s closing price last Friday. This will lead to an equity dilution of 17.1 crore shares, valued at Rs 6,591 crore. The company will also need an additional $400 million (Rs 3,598 crore) to pay Mylan, which holds a 6.09% stake.

As part of the announcement, the board has also approved raising Rs 4,500 crore through a Qualified Institutional Placement. The deal values Biocon Biologics at $5.5 billion.

After the deal, promoter holding in Biocon will fall below 50%.

At 11:43 AM, shares of Biocon Ltd were trading 1.10% lower at Rs 388.35 on NSE.