Biocon Share Price Gains 3% on Fundraising Announcement

Biocon’s share price rose by 2.61% to ₹398 per share on January 23, 2025, following the company’s announcement that its board will consider raising funds through commercial papers (CPs) or other private placement methods. The board meeting is scheduled for January 27, 2025.

Fundraising Plans 

The company stated that it is exploring the issuance of commercial papers or other modes of raising funds. This news positively impacted investor sentiment, leading to the stock’s increase during the day.

Credit Ratings 

India Ratings and Research (Ind-Ra) has affirmed Biocon’s credit ratings. The rating for Biocon’s non-convertible debentures (NCDs) remains at ‘IND AA+/Stable,’ while the proposed commercial papers have been rated ‘IND A1+.’ The rating agency also reaffirmed the ‘IND AA+/Stable’ rating for the company’s term loan under external commercial borrowings (ECBs).

Company Overview 

Biocon has a strong position in the global biosimilar market, particularly in the US and EU. The company recently completed the acquisition of biosimilars from Viatris Inc., enhancing its market share. Despite some debt reduction delays, the company expects significant product launches to improve credit metrics from FY27 onwards.

Stock Performance 

Biocon’s stock has underperformed the market, falling 10% in the last 6 months and 24% in the last year. However, the BSE Sensex dropped 4.9% in the last six months but rose 7.2% over the past year.

As of 1:24 PM, Biocon share price dropped by 2.28% to ₹396.70, while the BSE Sensex was up 0.31% at 76,642.01.

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