Biocon plans to merge Biocon Biologics in a $4.5 Billion Deal
Biocon Ltd is one of India’s top biopharma companies. It is now considering to bring its biosimilars arm, Biocon Biologics Ltd, back under the main company in a $4.5 billion merger plan. This plan is crafted with the aim of reducing debt and unlocking more value for its shareholders.
According to various news sources, Biocon is exploring a few big options like launching an IPO (listing Biocon Biologics as a separate company), going for a merger with the parent company, or doing a share swap deal. To help make a better decision, Biocon has brought Morgan Stanley as their advisor.
What’s Happening at the Backend?
People who have been following the company for a very long time and are familiar with the matter say that Biocon is already in talks with its minority shareholders to figure out the best deal structure. The decision of whether it should go for a direct share swap or a mix of cash and shares. The main goal is to choose an option that gives maximum benefit to shareholders, especially with the stock market being so unpredictable lately.
This shift is interesting because Biocon had originally planned to list Biocon Biologics separately. But according to Executive Chairperson Kiran Mazumdar-Shaw, that plan hit a setback. The chairperson mentioned that
“The IPO valuation was under pressure because of the acquisition debt.”
And that’s why the company decided to reconsider its options with expert help. Mazumdar-Shaw also added that the board is now studying both the routes, merger or IPO, to see which one can create value faster, given the current market situation.
Why does this step matter?
Biocon Biologics contributes to the major growth of the parent company. There was a quick growth after the company acquired a business worth 3.3 billion dollars. But along with the growth, there also came a debt of 1.3 billion dollars, which made things difficult.
As of statistics from March 2025, 90.2% of Biocon Biologics belong to Biocon and 6% belong to Serum Institute of Life Sciences. There are also a few other investors like True North and Tata Capital.
Strengthening Its Finances
To strengthen its position, Biocon recently raised ₹4,500 crore through a qualified institutional placement (QIP). This is the first major fundraising for Biocon in over 20 years. This helped the company to increase its stake in Biocon Biologics and made way for a few early investors to leave.
Mazumdar-Shaw had earlier mentioned that launching an IPO for Biocon Biologics wasn’t the right time due to global market uncertainty, and it was also difficult with the debt burden from the deal with Viatris.
Now, with Morgan Stanley’s guidance, Biocon is aiming to choose the clearest and quickest way to unlock value, either by merging Biocon Biologics into the parent company or going public when the market improves.
What’s Next?
The discussions are still going on, and there has been no final decision made yet. The final decision will depend on the company’s value, what shareholders think, and the overall financial situation.
After this news, the Industry experts are seeing this as a big strategic move by Biocon, which will make them stronger financially and improve the structure, also bring more unity between the businesses. This will mark the beginning and set the space for growth in the biopharma industry in India.
