Biocon shares gain 3% as arm Syngene gets Sebi nod for IPO

Shares of biotechnology major Biocon gained 3% on Tuesday after its research arm Syngene International received capital markets regulator Sebi's approval to launch an initial public offer (IPO).

Biocon stock climbed 2.93% to Rs 460 on the BSE. On the NSE, it was up 3% to Rs 460.

The company had filed its draft red herring prospectus (DRHP) with Sebi through its lead merchant banker Axis Capital in April.

Securities and Exchange Board of India (Sebi) issued its final observations on the draft offer documents on June 12, which is necessary for companies to launch any public offer.

As per the draft papers, 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.

Of the total shares on offer, 50% has been reserved for qualified institutional buyers, 15% for high net worth individuals and the rest for retail investors.