Serum Institute of Life Sciences (SILS) has increased its stake in Biocon Biologics by converting $150 million loan into equity.

The latest investment is in addition to the $150 million that SILS had invested in Biocon Biologics in November 2022, resulting in SILS’s aggregate equity investment in BBL amounting to $300 million.

Biocon didn’t disclose the quantum of stake SILS would be getting in Biocon Biologic. In earlier arrangement SILS was offered 15% stake for post-money valuation of $4.9 billion.

As per the new arrangement, BBL will have access to 100 million doses of vaccines annually together with the distribution rights to Serum’s Vaccine portfolio which will add to BBL’s product portfolio for global markets.

“BBL and Serum Institute of Life Sciences (SILS) have reached an agreement to withdraw from the original equity structure contemplated under their Strategic Alliance announced in Sep, 2021,” Biocon said in a statement to stock exchanges.

“The new terms will serve the objectives of both the companies, as it provides SILS an aggregated equity investment in BBL,” the statement added.
The equity conversion of $150 million debt will help Biocon to reduce the $1.2 billion debt that it has raised to fund the $3.3 billion acquisition of Viatris’ biosimilar business.

Shares of Biocon rose 3.21% and were trading at Rs. 232.80 on BSE at 2, while the Sensex gained 0.29% to 60,220.39 points at 1.30 pm.