Rs 300 crore Biocon shares change hands

Stock slumps 11.77 to close at Rs 622.40

Shares worth over Rs 300 crore changed hands at the Biocon counter on Tuesday. Mauritius-based AOF HS Mauritius sold 4.85 per cent or 48.5 lakh shares at an average Rs 605 per share. The FII sold these shares in two tranches "" 20 lakh shares at Rs 608.5 and 28.5 lakh shares at Rs 605.70 per share.

These were bought by other Mauritius-based funds including Goldman Sachs, Emerging Markets MGT.LLC-A/C EMSAF Mauritius and HSBC Equity Fund, and HSBC India Opportunity Fund.

Since the deal was struck way below Monday's closing price of Rs 694, the stock was down a staggering 11.77 per cent to close at Rs 622.40.

The counter was extremely volatile with the stock hitting an intra day high of Rs 739.40 and a low of Rs 605 before closing at Rs 622.40. Over 93 lakh shares were traded at the counter at the BSE alone.

Market analysts said, after a sharp surge in the last three trading sessions "" with the stock appreciating almost 120 per cent to Rs 694 as against the issue price of Rs 315 "" there was bound to be profit-booking at higher levels. The stock after listing on April 7 at Rs 400 gained 73.6 per cent to Monday's close of Rs 694.75.

While Goldman Sachs Invst Mauritius I Ltd, Short Term, bought 34,66,560 shares at Rs 605, Emerging Markets MGT.LLC-A/C EMSAF Mauritius bought 7.5 lakh shares at Rs 605. HSBC Equity Fund and HSBC India Opportunities Fund bought 3 lakh and 1.5 lakh shares, respectively.

Biocon is India's largest biotech company with a presence in bio-pharmaceuticals, enzymes, customs research and clinical research.

Biocon along with its subsidiaries is a completely integrated unit with capabilities from cell culture to drug discovery. Biocon has registered a strong financial performance over the past three years.

The company's revenues zoomed at a CAGR (compounded annual growth rate) of 74.9 per cent to Rs 371.23 crore in the nine months ended December 2003, from Rs 30.28 crore in FY 1999. The net profits rose at a CAGR of 144.2 per cent to Rs 86.11 crore in the nine months ended December 2003 from Rs 1.32 crore in FY 1999.