Biocon Rises 3% After Research Arm Gets Nod for IPO

Shares of Biocon rose as much as 3 per cent on Tuesday after the research arm of the biotechnology major received the capital markets regulator's approval to launch an initial public offer (IPO).

Biocon owns an 85.54 per cent stake in Syngene, India's largest provider of contract research services to the pharmaceutical industry.

As per the draft papers, the company plans to sell 22 million equity shares, including reservation of up to 2 million shares for Biocon shareholders, through an offer for sale.

In April, Biocon CMD Kiran Mazumdar-Shaw had said that the listing could be by July if all the approvals come on time.

While the company did not comment on the amount to be raised through the IPO, Press Trust of India, citing sources said it could be around Rs 600 crore. 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 the rest for retail investors.

In January, Biocon concluded a sale of 10 per cent stake in Syngene for Rs 380 crore to IVF Trustee Company. The deal had valued Syngene International at Rs 3,800 crore.

Syngene offers integrated drug discovery and development services with capabilities in medicinal chemistry, biology, in vivo pharmacology and toxicology. Syngene has a research team of 2,300 scientists.

At 11:15 a.m., shares of Biocon were up nearly 2 per cent to Rs 455.25 as compared to a 0.30 per cent decline in Sensex. (With Agency Inputs)