Biocon Ltd. is said to be exploring merger of Biocon Biologics Ltd. with itself in a deal that would peg the valuation of the biosimilars unit at $4.5 billion, even as the option of an IPO remains on the table.
The company, led by Kiran-Mazumdar Shaw, is in advanced talks with its minority shareholders for a share swap, ET reported on Thursday citing people aware of the matter. An option for cash and share swap is also proposed. When contacted, Shaw said Biocon is looking at all possible options—including a Biocon Biologics IPO, a merger or share swap. Morgan Stanley has been appointed to arrive at a decision.
“The valuation we were trying to get for IPO was under pressure due to acquisition debt,” Shaw said, referring to Biocon Biologics’ deal to buy Viatris’ biolosimilars business for $3.3 billion in 2022. “That is why we appointed Morgan Stanley, to say whether we should really do an IPO, or a merger or something of that sort. We can still do an IPO…but we are waiting for Morgan Stanley to tell us the best possible option for value creation.”
Biocon Biologics is majority controlled by Biocon, which has 90.2% stake in the biosimilars unit, while Adar Poonawalla’s Serum Institute of India holds 5.97%.
In June 2025, Biocon raised ₹4,500 crore via QIP to cut debt, which according to its annual report stood at ₹17,755 crore as on 31 March 2025.
Biocon Financials
The reports of a Biocon Biologics IPO or a merger with Biocon Ltd. come at a time when Shaw’s biotechnology firm has swung into profit.
Net profit of the Bengaluru-based company stood at ₹84.5 crore in the three months ended 30 September, as against a loss of ₹16 crore in the year-ago period, on revenue that increased 19.6% year-on-year to ₹4,296 crore.
Biocon Q2 Results FY26 (Consolidated, YoY)
- Revenue up 19.6% at ₹4,296 crore
- EBITDA up 21.9% at ₹835 crore
- EBITDA margin up 30 bps at 19.4%
- Net profit at ₹84.5 crore vs ₹16 crore loss
One basis point is one-hundredth of a percentage point.
To be sure, Biocon Biologics accounts for more than half of Biocon’s topline—at least on an annual basis. In the fiscal ended 31 March 2025, Biocon Biologics accounted for 55%, or ₹9,017 crore, of Biocon’s total consolidated revenue of ₹16,470 crore, according to its annual report. A Biocon Biologics IPO, then, or even a merger, points to siginificant value unlocking for investors.
