Biocon hogs limelight as Temasek looks to acquire stake

Shares of Biocon rose more than 4 per cent on Wednesday triggered by reports that some domestic and foreign firms are looking to acquire stake in company's subsidiary Biocon Biologics India.

According to the reports, Singapore-based investment company Temasek, True North along with Canadian Pension Plan Investment Board (CPPIB) are separately in discussions to invest $300 million for a minority stake in the company’s subsidiary.

Both Temasek and TrueNorth have been promoting Biocon and if the reports are confirmed then this will be the third time that the domestic private equity fund TrueNorth will be backing a company owned by Kiran Mazumdar Shaw.

Last month, Biocon had amazed the Street with its earnings for June quarter. It reported a whopping 86 percent yoy rise in net profit at Rs. 223 crore in Q1FY20. Strong bottom line numbers were driven by growth of biosimilars and small molecules businesses.

Company’s sales, however, declined by 28.5 per cent to Rs. 480.80 crore in Q1FY20 as compared to Rs. 672.20 crore in Q1FY19.

Biocon shares extended its gains into second straight session and closed at Rs.223.30 on BSE. The stock opened at Rs. 221.00 and gained nearly 4 per cent to hit an intraday high of Rs. 226.60. It had hit its 52-week high of Rs. 243.80 and its 52-week low of Rs. 211.30 on the BSE.