Private Equity

PE Fund Investments

Biocon raises Rs.1,070-Cr from Kotak fund

BSE Announcemen   Economic Times  

Kotak Special Situations Fund, an alternative investment fund managed by Kotak Investment Advisors Ltd (KIAL), is to invest INR 1,070 crore (about USD 129 million) - via non-convertible debentures (NCDs) - in publicly listed Biocon Ltd. The 5-year tenure instrument carries an IRR of 12% p.a. plus variable coupon. The investor will have a first ranking exclusive charge by way of pledge over specified number of equity shares of Biocon Biologics Limited held by Biocon Limited. The new capital will be used to help fund Biocon Biologics' USD 3.34 Billion acquisition of US-based Viatris's biosimilars business. The company paid USD 2 Billion in cash to Viatris and issued convertible preference shares for USD 1 Billion to fund the deal. Earlier this month, Biocon sold a nearly 10% stake in its unit and contract research firm Syngene International Ltd, raising INR 22.5 Billion to help fund the deal.