Biocon Shares Fall 3% on Biocon Biologics Buyout; Analysts See Earnings Dilution

• Biocon shares dropped 3% on December 8 due to analyst concerns over equity dilution from its Biocon Biologics buyout.
• Biocon plans to acquire the remaining 23.3% stake in Biocon Biologics, making it a 100% wholly-owned subsidiary.
• The acquisition involves issuing over 17 crore equity shares (up to Rs 6,950 crore) and raising up to Rs 4,500 crore.
• Analysts predict significant equity and earnings per share (EPS) dilution for Biocon shareholders.
• JM Financial maintains a 'Buy' call on Biocon, expecting a 10% valuation increase due to the removal of holdco discount.

Why It Matters: Biocon's acquisition may dilute shares, affecting your investment value.