The share price of Biocon Ltd gained over 2 percent on Friday after it announced that its subsidiary Biocon Biologics Ltd has approved a Rs 555-crore investment from Abu Dhabi-based ADQ.

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In a regulatory filing, Biocon said that the board of its subsidiary Biocon Biologics Ltd has approved a primary equity investment by Abu Dhabi-based ADQ. As per the terms of the proposed agreement, ADQ will invest Rs 555 crore for a 1.80 percent minority stake in the biosimilar business.

The deal values Biocon Biologics at a post-money valuation of USD 4.17 billion.

After the completion of this transaction, Biocon Ltd will hold an 89.89 percent stake in Biocon Biologics on a fully diluted basis.

“This investment is an endorsement of the value that Biocon Biologics business has built as a fully integrated pure-play biosimilars company and will enable us to expand our capabilities further. The current investment has put post money valuation of Biocon Biologics at USD 4.17 billion,” said Kiran Mazumdar-Shaw, Executive Chairperson, Biocon.

The transaction is subject to customary condition precedents and approvals.

The stock price of Biocon gained as much as 2.80 percent to Rs 467.70 apiece on the BSE. At 11:15 am, the shares were trading 2.48 percent higher at Rs 466.25 as compared to a 0.87 percent gain in the benchmark Sensex.

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