Biocon Shares Rise 2% After Rs 4,500 Crore QIP, HSBC Maintains 'Buy'

HSBC has reaffirmed its 'buy' rating on

shares, setting a revised price target of Rs 390, down from Rs 400, suggesting a 14% upside. The rating follows Biocon’s board approval on April 23 to raise up to Rs 4,500 crore through a qualified institutional placement (QIP) and other methods to reduce debt and enhance financial flexibility. The QIP, with a floor price of Rs 340.20 per share as per SEBI regulations, aims to support Biocon’s growth in biosimilars, generics, and research services. HSBC notes that while the QIP will ease leverage, scaling and developing new biosimilars is crucial for Biocon’s turnaround. The stock gained 2% after the announcement.