Biocon jumps on Syngene DRHP

Biocon is seeing some activity on its counter today. The stock, which has been lying low for some time now, is currently up 1.5% at Rs.463, with an intra day high at Rs.470.45.

The company has filed a Draft red Herring Prospectus (DRHP) today morning for its wholly owned subsidiary, Syngene, a step down research arm of Biocon. The company had indicated earlier that it had plans to get this company listed and now it is going ahead with it.

Biocon holds a 86% stake in Syngene and it plans to offload 10%. It is now in the process of completing the necessary formalities for the listing, including FIPB approval.  Based on the timelines of various approvals expected, Biocon hopes to get the company listed by July’15.

Biocon, under the proposed issue, through an offer for sale (OFS) route, will be offering 22,000,000 equity shares of face value of Rs. 10 each for cash and at such premium as may be determined. The offer includes a reservation of 2,000,000 Equity Shares for Biocon Shareholders.

In Spet’14, PE fund India Value Fund Advisors (IVFA) had picked up a 10% stake in Syngene for Rs 380 crore. The deal values Syngene at Rs 3,800 crore ($622 million) and when it goes for the IPO, the valuation is expected to be much higher.