Abu Dhabi’s state entity ADQ, formerly known as Abu Dhabi Developmental Holding Company, will invest Rs 555 crore ($75.6 million) in Biocon Biologics Ltd.
The board of the biosimilars firm has approved the investment.
As part of the transaction, ADQ, a frequent investor in India, will pick up a 1.8% stake in the unit of Biocon Ltd, the biopharmaceutical parent said in a stock exchange filing on Thursday.
The investment will value Biocon Biologics at around $4.17 billion (about Rs 30,605 crore) on a post-money basis. Going by current stock-exchange data, Biocon Ltd has a market capitalisation of Rs 54,594 crore. Following the investment, it will hold a 89.89% stake in the subsidiary.
Biocon Biologics has previously raised capital from other private equity and investment firms. In November 2020, it raised Rs 1,125 crore ($150 million) from Goldman Sachs.
Prior to that, in July 2020, Biocon Ltd said a PE fund managed by Tata Capital Ltd would invest Rs 225 crore (around $30 million) in the biosimilars business. In January 2020, Biocon Ltd said True North would invest Rs 536.25 crore ($74.84 million) in its subsidiary.
“This investment is an endorsement of the value that the Biocon Biologics business has built as a fully integrated pure-play biosimilars company, which will enable us to expand our capabilities further,” Biocon Ltd executive chairperson Kiran Mazumdar-Shaw said.
ADQ chief executive officer HE Mohamed Hassan Alsuwaidi said the investment in Biocon Biologics is in line with the firm’s long-term strategy of creating a “provision-centred” and digitally enhanced ecosystem with its healthcare and pharmaceuticals portfolio.
According to Biocon Ltd’s annual report for the 2019-20 financial year, Biocon Biologics reported revenues of Rs 1,951.3 crore.
Shares of Biocon Ltd ended trading on Thursday down 1.11% at Rs 454.95 apiece. The company reported consolidated net sales of Rs 6,367.2 crore for 2019-20, with net profit of Rs 899.8 crore for the same period.