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India Value Fund Advisors (IVFA), an India-focused private equity fund, has picked up a 10 per cent stake in Syngene, the research services subsidiary of publicly-held Biocon Ltd, through its fund Silver Leaf Oak (Mauritius) Ltd for Rs 380 crore.
The deal gives Syngene a valuation of Rs 3,800 crore. Notably, IVFA’s move comes close on the heels of Biocon giving an exit to its earlier private equity investor in Syngene, GE Capital, at a valuation of Rs 2,800 crore. GE Capital had held 7.69 per cent in Syngene for which it received Rs 215 crore at the time of exit.
Kiran Mazumdar-Shaw, Biocon’s chairman and managing director, said: “We are pleased to welcome Silver Leaf as a shareholder. This investment reflects Syngene’s position in the contract research and manufacturing space in Asia, acknowledging its comprehensive multi-disciplinary capabilities. This transaction is part of the overall strategic plan for Syngene and sets a new benchmark as we prepare the company for listing.”
Syngene is said to account for about a quarter of Biocon’s revenues of Rs 2,900 crore on an annualised basis and works with 16 of the top 20 pharmaceutical companies in the world, including Bristol-Myers Squibb, Baxter, Abbott Nutrition, among others.
Syngene is among the top three clinical research organisations in India and employs about 2,000 researchers working with global companies including in key drug research. The company has so far invested about Rs 800 crore on this business.
Vishal Nevatia, managing partner, India Value Fund Advisors, said: “We had partnered with Biocon through our first fund in 2003. We are excited to partner with them again. Syngene has emerged as one of the leading service providers globally for integrated discovery and development with a marquee client base. This deal showcases the IVFA investment philosophy of working with high quality entrepreneurs and management teams.”
