 "Biocon to go ahead with Syngene IPO, listing likely in July")
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.
The stake dilution will be 11 per cent of the post-issue diluted equity capital of Syngene.
Of the total shares on offer, 50 per cent has been reserved for qualified institutional buyers (QIBs), 15 per cent for high net worth individuals and 35 per cent for retail investors.
The listing is expected to materialise by July subject to receipt of regulatory approvals on time.
In January, Biocon concluded a sale of 10 per cent stake in Syngene for Rs 380 crore to IVF Trustee Company. The deal had put the entire valuation of Syngene International 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 had remained unexecuted since 2012 due to uncertainties in the global and domestic economic environment. Syngene has a research team of 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 a life of its own.”
“The DRHP (draft red herring prospectus) has been filed with the market regulator today,” the company said on Wednesday.
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.