Biocon wants to raise ₹4,500cr via QIP this week
What's the story
Biocon Ltd, the bio-pharmaceutical giant led by Kiran Mazumdar-Shaw, is gearing up to launch its proposed Qualified Institutional Placement (QIP) very soon.
The fundraising exercise could begin as early as this week and is expected to raise up to ₹4,500 crore.
The move comes as part of a strategy to cut debt and strengthen the company's balance sheet.
Advisory team
Biocon's board approved fundraiser in April
The fundraising effort has been in the works for some time now.
Kotak Mahindra Capital, Goldman Sachs, and BofA Securities have all been roped in as advisors for this capital raise.
The decision to go ahead with a QIP comes after Biocon's board approved the raising up to ₹4,500 crore through securities issuance on April 23.
Financial health
Biocon has a net debt of about $1.2B
Biocon's Executive Chairperson Mazumdar-Shaw had previously said the company plans to complete this fundraising exercise in three to four months.
She had also hinted at converting the venture debt into promoter equity for a healthier balance sheet.
Currently, Biocon has a net debt of about $1.2 billion, excluding structured instruments.
Business outlook
Profit jumps 154% YoY in Q4 FY24
In the fourth quarter, Biocon reported a 154% YoY jump in its net profit after exceptional items (unusual business cost or source of revenue) to ₹344.5 crore from ₹135.5 crore last year.
Revenue also rose by 12.8% YoY to ₹4,417 crore, beating estimates of ₹4,168.6 crore.
EBITDA saw a growth of 17.7% YoY at ₹1,078.2 crore against the ₹915.9 crore in the same quarter the previous year.