Biocon gains on reports Syngene gets Sebi nod for IPO

Biocon rose 1.32% to Rs 452.80 at 14:43 IST on BSE on reports the company's research arm Syngene International received capital markets regulator's approval to launch an initial public offer.

Meanwhile, the BSE Sensex was down 28.59 points, or 0.11%, to 26,557.96.

On BSE, so far 75,000 shares were traded in the counter, compared with an average volume of 1.15 lakh shares in the past one quarter.

The stock hit a high of Rs 460 and a low of Rs 449.60 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 402.45 on 7 January 2015.

The stock had outperformed the market over the past one month till 15 June 2015, rising 1.27% compared with 2.70% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 4.80% as against Sensex's 6.72% fall.

The mid-cap company has an equity capital of Rs 100 crore. Face value per share is Rs 5.

According to reports, Syngene International, research arm of biotechnology major Biocon, has received capital markets regulator Securities and Exchange Board of India (Sebi)'s approval to launch an initial public offer (IPO).

Syngene International had filed its draft red herring prospectus (DRHP) with Sebi through its lead merchant banker Axis Capital in April 2015.

Sebi issued its final observations on the draft offer documents on 12 June 2015, which is necessary for companies to launch any public offer, reports added.

As per the draft papers, Syngene plans to sell 2.2 crore equity shares, including reservation of up to 20 lakh shares for Biocon shareholders, through an offer for sale. The offer would constitute 11% of the post offer paid-up equity capital of the company.

Biocon along with its subsidiary Biocon Research (BRL) holds 84.5% equity stake in Syngene.

On a consolidated basis, net profit of Biocon rose 78.23% to Rs 201.54 crore on 14.92% rise in net sales to Rs 830.38 crore in Q4 March 2015 over Q4 March 2014.

Biocon is India's largest and fully-integrated, innovation-led biopharmaceutical company.

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