Biocon board to weigh Biocon Biologics investment, new fundraising plan on December 6; Stock down 6%

Biotechnology firm Biocon Ltd on Wednesday (December 3) said its board of directors will meet on Saturday (December 6) to review two key proposals related to its unlisted material subsidiary Biocon Biologics Limited and the company’s future capital requirements.

The board will examine a proposal for investment in Biocon Biologics Ltd (BBL) through the purchase or acquisition of securities from existing shareholders of BBL. The consideration may involve cash and/or non-cash components.

As part of the transaction structure, Biocon may issue and allot fully paid-up equity shares on a preferential allotment basis through private placement to the shareholders of BBL.

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The second item on the agenda covers a broader capital-raising plan. The board will evaluate raising funds through the issuance of commercial paper via private placement and/or equity shares or other eligible securities.

The company noted that the fundraising may be executed through one or more permissible modes, including qualified institutions placement, rights issue, preferential issue, further public offer, or other structures. The plan may be undertaken in one or more tranches depending on requirements.

Shares of Biocon Ltd were trading 5.7% lower at ₹386.65 apiece around 1.35 pm on Thursday, December 4. 

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