Offer allows Biocon to monetise its shareholding in Syngene
Biocon’s contract research subsidiary Syngene International has filed the Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) recently, seeking approval for an Initial Public Offering (IPO). This is an offer for sale (OFS) by Biocon of a part of its shareholding in Syngene. Biocon along with its subsidiary Biocon Research Limited (BRL) currently holds an 84.5 per cent equity stake in Syngene.
Biocon is offering to sell up to 22 million equity shares of face value of Rs 10 each, through Syngene’s IPO. The offer includes a reservation of two million equity shares for Biocon’s public equity shareholders, being individuals and HUFs. The offer would constitute 11 per cent of the post offer paid-up equity share capital of the company.
Kiran Mazumdar-Shaw, Chairperson and Managing Director, Biocon, said, “Syngene has a proven track record of providing quality NME discovery, development and manufacturing services. It has long-standing partnerships with three of the world’s leading global healthcare organisations, including Bristol-Myers Squibb Co and has attracted equity participation from India Value Fund recently, which is reflective of the scale, the value and the quality of the differentiated business model of Syngene.”
“We are unlocking value from Syngene to fund our R&D programmes, which include a rich pipeline of biosimilars and novel biologics. This fund infusion will help accelerate these programmes which are at various stages of development currently,” she added.
Peter Bains, Chief Executive Officer, Syngene, said, “Over the years, Syngene has built an integrated end-to-end discovery and development platform to service its partners across various industry segments. We further intend to evolve from a CRO into a full-fledged contract research and manufacturing services company providing additional forward integration opportunities to our clients.”
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