Biocon share price jumped over 4% to a fresh 52-week high on Thursday after reports stated that the company was evaluating an internal merger of its biosimilars arm, Biocon Biologics, with the parent entity. Biocon shares rallied as much as 4.01% to a new high of ₹422.65 apiece on the BSE.
According to a report by The Economic Times, Biocon is in advanced discussions to restructure its wholly owned subsidiary Biocon Biologics, and is reviewing an initial public offering (IPO) and share swap with minority investors.
The move is part of the company’s broader efforts to unlock shareholder value and reduce acquisition-related debt. Earlier, ET reported that the Bicon was exploring multiple strategic options, including a share swap, an IPO, or a combination of cash and share swap mechanisms.
The potential merger values Biocon Biologics at around $4.5 billion. As of March 31, Biocon holds a 90.2% stake in the biosimilars unit, while Serum Institute of Life Sciences is the largest external shareholder with a 5.97% stake.
At 12:20 PM, Biocon share price was trading 3.83% higher at ₹421.90 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Source link