Biocon rose 2.31% to Rs 511.50 at 9:25 IST on BSE after the company said it sold a 10% stake in its research services arm, Syngene International, to Silver Leaf Oak (Mauritius) for Rs 380 crore.
The announcement was made after market hours on Thursday, 18 September 2014.
Meanwhile, the BSE Sensex was up 44.46 points, or 0.16%, to 27,156.67.
On BSE, so far 72,000 shares were traded in the counter, compared with an average volume of 1.45 lakh shares in the past one quarter.
The stock hit a high of Rs 514.90 and a low of Rs 510.35 so far during the day. The stock hit a record high of Rs 553.70 on 4 July 2014. The stock hit a 52-week low of Rs 324.05 on 21 October 2013.
The stock had outperformed the market over the past one month till 18 September 2014, rising 6.47% compared with 2.73% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 1.48% as against Sensex's 7.39% rise.
The mid-cap company has an equity capital of Rs 100 crore. Face value per share is Rs 5.
Silver Leaf Oak (Mauritius) (Silver Leaf), an investment vehicle advised by India Value Fund Advisors (IVFA) has agreed to acquire a minority 10% stake in Syngene International (Syngene), Biocon's Research Services subsidiary. Silver Leaf will acquire the stake from Biocon Research (BRL), a wholly-owned subsidiary of Biocon at a valuation of Rs 3800 crore. The transaction is subject to standard condition precedents including regulatory approvals. Post the completion of this transaction, Biocon and BRL will jointly hold 85.54% stake in Syngene.
Syngene is India's leading contract research organization offering integrated drug discovery and development services with capabilities in medicinal chemistry, biology, in vivo pharmacology, toxicology, custom synthesis, process Research and Development, and formulation development for small and large molecules.
Kiran Mazumdar-Shaw, Biocon's Chairman and Managing Director said, "We are extremely pleased to welcome Silver Leaf as a shareholder. This investment reflects Syngene's leading position in the contract research and manufacturing space in Asia, acknowledging its comprehensive multidisciplinary capabilities. This transaction is part of the overall strategic plan for Syngene and sets a new benchmark as we prepare the company for listing."
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."
On a consolidated basis, Biocon's net profit rose 10.06% to Rs 102.91 crore on 2.60% increase in total income to Rs 741.95 crore in Q1 June 2014 over Q1 June 2013.
Biocon is a fully-integrated, innovation led, emerging global biopharmaceutical enterprise serving customers in over 85 countries. It is committed to reduce therapy costs of chronic diseases, like autoimmune, diabetes, and cancer to enable access to affordable healthcare solutions for patients, partners and healthcare systems across the globe.
Powered by Capital Market - Live News
