In a transaction worth $5.5 billion, Biocon Ltd. will incorporate Biocon Biologics Ltd. as a fully owned subsidiary, the firm said on Saturday.
Through a share exchange of 70.28 Biocon shares for every 100 Biocon Biologics shares, at ₹405.78 per share, Biocon will purchase the remaining shareholding in Biocon Biologics from Serum Institute Life Sciences, Tata Capital Growth Fund II, and Activ Pine LLP.
For a total payment of $815 million, of which $400 million will be paid in cash and the remaining amount via a share exchange of 61.70 Biocon shares for every 100 Biocon Biologics shares, at ₹405.78 per share, it will also purchase the remaining shareholding owned by Mylan Inc. (Viatris).
It is anticipated that the unit will be fully integrated by March 31, 2026. In order to assess a possible merger or public offering for the biologics division, the business established a strategy committee in May 2025.
The company released a statement saying, “The Committee determined that full integration of Biocon Biologics Limited with Biocon Limited offers the most efficient and value-accretive path forward after carefully considering key parameters such as strategic alignment, sectoral dynamics, shareholder value creation, and other pertinent data.”
The board of Biocon has also authorized the use of qualified institutional placement (QIP) to raise an additional ₹4,500 crore, subject to shareholder approval. The majority of the QIP’s revenues will go toward the cash amount due to Viatris.
After obtaining ₹4,500 crore via a QIP in June 2025, Biocon completed its structured loan commitments with Goldman Sachs, Kotak Mahindra Bank, and a commercial paper last quarter. The business still owes $1.2 billion in net debt.
Until the merger process is finished, Siddharth Mittal and Shreehas Tambe will remain in their positions as CEO and managing director of Biocon Ltd. and Biocon Biologics Ltd., respectively.
Following the combination, Kedar Upadhye will become the merged company’s chief financial officer, while Tambe will serve as its CEO and managing director. According to the corporation, Siddharth Mittal will take on a leadership position inside the organization.
