New Delhi, Jul 31 (PTI) Biotechnology major Biocon on Friday said Tata Capital Growth Fund will invest USD 30 million (Rs 225 crore) in its subsidiary Biocon Biologics to acquire 0.85 per cent equity stake in the company.
The firm said this deal values Biocon Biologics at USD 3.5 billion.
In a regulatory filing, Biocon said the board of its subsidiary Biocon Biologics India has approved a primary equity investment by Tata Capital Growth Fund.
As per the terms of the proposed agreement, Tata Capital will invest USD 30 million (Rs 225 crore) for a 0.85 per cent minority stake in the biosimilar business.
Post the completion of this transaction, Biocon will hold 95.25 per cent stake in Biocon Biologics, the biotechnology major added.
The transaction is subject to standard condition precedents and approvals.
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 USD 1 billion in financial year 2021-22,” Hamacher added.
Akhil Awasthi, Managing Partner, Tata Growth PE, said this investment is in line with its focus on export-oriented manufacturing in world beating companies.
Shares of Biocon were trading 0.53 per cent higher at Rs 405.55 apiece on BSE. PTI SVK ANS ANS