Biotechnology major Biocon on Wednesday filed prospectus with market regulator SEBI for the initial public offer of its research arm Syngene through which aims to raise around Rs 600 crore that will be used to fund its R&D programmes.
Biotechnology major Biocon on Wednesday filed prospectus with market regulator SEBI for the initial public offer of its research arm Syngene through which aims to raise around Rs 600 crore that will be used to fund its R&D programmes.
"The DRHP (Draft Red Herring Prospectus) has been filed with the market regulator today," the company said. The company plans to sell 22 million equity shares, including reservation of up to two million shares for Biocon shareholders, through an offer for sale.
While the company did not comment on the amount to be raised through the IPO, sources said it could be around Rs 600 crore, which will be used to fund research and development programmes. The stake dilution will be 11% of the post issue diluted equity capital of Syngene.
Out of the total shares on offer, 50% has been reserved for QIBs, 15% for high net worth individuals and 35% for retail investors. The listing is expected to materialise by July this year subject to receipt of regulatory approvals on time.
In January this year Biocon concluded sale of 10% stake in Syngene for Rs 380 crore to IVF Trustee Company Private Ltd. The deal had put the entire valuation of Syngene International Ltd at Rs 3,800 crore. The public listing of Syngene, which offers integrated drug discovery and development services with capabilities in medicinal chemistry, biology, in vivo pharmacology and toxicology, has been much-delayed.
The plan has remained unexecuted since 2012 due to uncertainties in global and domestic economic environment. Syngene has a research team of over 2,300 scientists.
Commenting on the development, Biocon Chairperson & Managing Director Kiran Mazumdar-Shaw told PTI: "The listing of Syngene is about monetising Biocon's stake in Syngene and to give Syngene life of its own."
The listing could be by July if all the approvals come on time. The money that would be raised would be used to fund the R&D programmmes, she added.
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