Biocon gains on plans to buy GE stake in Syngene

Biocon plans to buy back the 7.69% stake held by GE Capital in Biocon's research arm Syngene for Rs 215.38 crore

Shares of Biocon were up nearly 2% at Rs 511 after the company said it plans to acquire GE Capital's stake in its research arm Syngene.

The company plans to buy back the 7.69% stake held by GE Capital in Biocon's research arm Syngene for Rs 215.38 crore, valuing the research arm at around Rs 2,800 crore.

The buyback is being executed by Biocon Research Limited, a wholly owned subsidiary of Biocon. GE Capital had invested Rs 125 crore during end of October 2012 and is making a healthy exit. GE had during that time valued Syngene at a post-money valuation of Rs 1625 crore.

Syngene accounts around a fourth of Biocon's revenues of Rs 2,900 crore on an annualised basis.

The stock opened at Rs 504 and touched a high of Rs 512 so far. Over 1.2 million shares were traded on both the stock exchanges so far.