Tata Capital Growth Fund will invest Rs 225 crore in Biocon Biologics India Ltd for an equity stake of 0.85 per cent.
In a regulatory filing on Friday, Biocon Ltd said that the Board of its subsidiary Biocon Biologics has approved a primary equity investment by Tata Capital Growth Fund.
"As per the terms of the proposed agreement, Tata Capital will invest Rs 225 crore for a 0.85 per cent minority stake in the biosimilar business, valuing Biocon Biologics at an equity valuation of Rs 26,250 crore, or $3.5 billion, and an enterprise valuation of Rs 30,400 crore, or $4.0 billion," it said.
The transaction is subject to standard condition precedents and approvals. Post the completion of this transaction, Biocon will hold 95.25 per cent stake in Biocon Biologics.
Christiane Hamacher, CEO, Biocon Biologics, said: "We are pleased with Tata Capital's investment in Biocon Biologics, which is an endorsement of the value we have created through our demonstrated success and credibility as a global biosimilars player, with two products commercialised in the U.S. and the launch of the third biosimilar on the anvil."
"This equity infusion is the next step in our journey of unlocking value. Through prudent investments in R&D 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 1 billion dollars in FY22," the CEO said.
The filing said that the equity infusion by Tata Capital will enable Biocon Biologics' future growth through prudent capital allocation, while the Biocon arm continues its investments in R&D and manufacturing to meet the growing demands of patients worldwide.