Biocon extends gain on GE Capital stake buy in research arm

Biocon has rallied around 6% to Rs 304, extending its over 10% rally after the financial services unit General Electric Company; GE Capital has acquired nearly 8% in the company’s subsidiary Syngene.

On October 31, Biocon has signed an agreement with GE Equity International Mauritius, a subsidiary of GE Capital Corporation, which will make a primary equity investment in its research services subsidiary, Syngene International Limited (Syngene), Biocon said in a press release.

As per the terms of the agreement, GE Capital would invest Rs 125 crore for a 7.69% equity share in Syngene. The transaction is subject to standard condition precedents including regulatory approvals, it added.

The stock has rallied 17% in past seven trading sessions compared to 2% rise in benchmark index Sensex. As many as a combined 932,412 shares have already changed hands on the counter so far against an average 622,826 shares that were traded daily in past two weeks.