Biocon Stock Rebounds: SEBI RA Ketan Mittal Warns That Short-Term Headwinds Remain

The company is looking to raise ₹4,500 crore by selling a 11.6% stake. Analysts say the fundraise could ease debt, but biosimilar execution remains key.

Shares of Biocon were up 1.7% at ₹348.35 on Thursday, after falling 4.3% in the previous two sessions.

The pharma company is looking to raise ₹4,500 crore through a qualified institutional placement (QIP) at a floor price of ₹340.20 per share. It accounts for about an 11.6% stake.

Global brokerage firm HSBC trimmed its price target on Biocon to ₹390 from ₹400, while retaining its 'Buy' rating on the stock.

According to reports, HSBC noted that a successful QIP would help reduce Biocon’s debt burden but stressed that scaling up new biosimilars remains a key factor.

Biocon plans to raise funds to meet its financial obligations, including repaying optionally convertible debentures (OCDs) issued to Goldman Sachs AIF.

SEBI-registered analyst Ketan Mittal noted that while the QIP could be a long-term positive, short-term challenges persist, particularly the risk of potential tariffs on the pharma sector by U.S. President Donald Trump.

Retail sentiment on Stocktwits for Biocon’s shares turned ‘bullish’ from ‘bearish’ a week ago, amid high message volumes.

Year-to-date (YTD), the stock has shed 4.2%.

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