Investor interest in public issues seems to be gathering pace, with the Syngene International IPO getting strong response.
Syngene International’s ₹550-crore initial public offer has been subscribed 31.95 times. The company, which fixed the price band at ₹240-250 a share, saw its issue receiving bids for 51.11 crore shares compared with 1.6 crore shares on offer. The IPO closed for subscription on Thursday.
On Monday, Power Finance Corporation’s stake sale witnessed huge response from all categories of investors, particularly retail.
Syngene International, ahead of the IPO, had allotted 60 lakh shares to 13 anchor investors at ₹250 apiece, raising about ₹150 crore in the process. The Government of Singapore, Monetary Authority of Singapore, Oppenheimer, Goldman Sachs, Morgan Stanley, Columbia Emerging Markets and DB International (Asia) have invested in the Biocon subsidiary as anchor investors.
Biocon shareholders According to bid details on the NSE, the QIB portion was subscribed 38.04 times while the non-institutional portion received 33.34 times subscription.
While the retail portion of the issue was subscribed 1.62 times, Biocon shareholders’ portion remained under subscribed. As against the reservation of 20 lakh shares, Biocon shareholders have bid for only 11.7 lakh shares (60 per cent).
The company plans to use the funds to expand parent Biocon’s bio-similar molecule portfolio.
Biocon owns 83.6 per cent stake in Syngene, of which it will sell 11 per cent through this issue.
Axis Capital, Credit Suisse Securities and Jefferies India are the book-running lead managers to the issue.
Syngene International is a contract research organisation, offering a suite of integrated, end-to-end discovery and development services for novel molecular entities across industrial sectors, including pharmaceutical, biotechnology, agrochemical, consumer health, animal health, cosmetic and nutrition companies.
Besides Syngene and PFC, with this the current fiscal has seen Manpasand Beverages, UFO Moviez, PNC Infratech and MEP Infrastructure Developers successfully raise funds through the IPO route.
Of late, public issues of fundamentally strong companies have been receiving tremendous response. These include VRL Logistics and INOX Wind which approached market in April.