Biocon arm Syngene files papers for ₹1,000-cr IPO

Biocon is planning to get its subsidiary Syngene listed with the stock exchanges in July. Biocon, which owns an 86 per cent stake in the R&D subsidiary, plans to raise ₹1,000 crore through the public issue.

Kiran Mazumdar Shaw, Chairman and Managing Director, Biocon, said the company has filed the draft red herring prospectus on Wednesday with the market regulator, Securities and Exchange Board of India.

Further Biocon will be offloading at least 10 per cent of Syngene equity as it needs funds to support some of its research and development programmes, added Shaw.

PTI adds: The company plans to sell 22 million equity shares, including reservation of up to 20 lakh shares for Biocon shareholders, through an offer for sale. The stake dilution will be 11 per cent of the post issue diluted equity capital of Syngene.

Out of the total shares on offer, 50 per cent has been reserved for qualified institutional buyers, 15 per cent for high net worth individuals and 35 per cent for retail investors.

In January this year Biocon concluded sale of 10 per cent stake in Syngene for ₹380 crore to IVF Trustee Company Pvt Ltd. The deal had put the entire valuation of Syngene International Ltd at ₹3,800 crore.

Syngene has a research team of over 2,300 scientists.