Tata Capital Growth Fund to invest Rs 225 Crore in Biocon Biologics

Tata Capital Growth Fund plans to invest Rs 225 crore (US$ 30 million) in Biocon’s subsidiary, Biocon Biologics to acquire 0.85 per cent equity stake in the company.

This deal has now taken the value of Biocon Biologics at US$ 3.5 billion.

According to the regulatory filing, Biocon said the board of its subsidiary Biocon Biologics India has approved a primary equity investment by Tata Capital Growth Fund.

Under the proposed agreement, Tata Capital will invest US$ 30 million for a 0.85 per cent minority stake in the biosimilar business.

After the completion of this transaction, Biocon will hold 95.25 per cent stake in Biocon Biologics, the biotechnology major added.

Though, approvals are required for the transaction.

Dr Christiane Hamacher, CEO, Biocon Biologics, said, “This equity infusion is the next step in the company’s journey of unlocking value”.

“Through prudent investments in research and development and high-quality manufacturing infrastructure we are confident of achieving our aspiration of serving 5 million patients through our biosimilars portfolio and achieving a target revenue of US$ 1 billion in financial year 2021-22," Mr Hamacher added.

Mr Akhil Awasthi, Managing Partner, Tata Growth PE, said, “This investment is in line with its focus on export-oriented manufacturing in world beating companies”.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.