Biocon CEO Rules Out Immediate Biocon Biologics IPO

Mittal said that while an initial public offering (IPO) for Biocon Biologics remains a strategic option for unlocking value, no concrete timeline has been set.

In a major strategic update, Biocon CEO has revealed that the company has no immediate plans to divest further stakes in Syngene or take Biocon Biologics public.

CEO and MD, Siddharth Mittal, said that while an initial public offering (IPO) for Biocon Biologics remains a strategic option for unlocking value, no concrete timeline has been set, as reported by CNBC-TV18. 

This follows the firm’s INR 4,500 Cr Qualified Institutional Placement (QIP). 

“Once that evaluation is complete, we will decide the next course of action,” he said.

The QIP funds are primarily being used to repay private equity investors who had backed the company during its acquisition of Viatris’ biosimilars business.

According to Mittal, around $200 mn of the $550 mn owed to these investors will be repaid immediately, with the remainder expected to be cleared by March 2026.

He clarified that the proceeds from the QIP will go toward structured equity obligations and will not reduce Biocon’s operational debt, which remains at $1.1 bn.

“The net debt at the business level does not change,” he told.

Biocon expects to benefit from lower interest costs starting next fiscal year. Mittal projected 9-10% annualized interest savings on roughly $500 mn of borrowings.

Mittal also addressed long-term debt management, stating that the company’s $800 Million bond due in 2029 has no interim repayments, while the $300 mn in bank debt is scheduled to begin repayment in FY27.

“As we expect our business to grow and cash flows to improve, we would start repaying in a manner aligned with that,” he noted.

The QIP has led to a reduction in promoter holding from 61% to 54%. However, Mittal emphasised that maintaining a majority stake is still strategically important.

“There is no specific threshold in mind, but holding more than 50% makes sense,” he said.

The QIP saw strong interest from domestic mutual funds, insurance companies, and foreign institutional investors. “The demand was so strong that we thought it would be better to complete the entire book at this stage,” Mittal added.

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