Biocon sets price band at Rs 240-250 for research arm's IPO

Biotechnology major Biocon Ltd has set the price band at Rs 240-250 per equity share for the initial public offering of its research arm Syngene International Ltd.
"The Offer shall open for subscription to public on Monday, July 27, 2015 and shall close on July 29, 2015. The price band has been fixed between Rs 240 to Rs 250 per equity share," Biocon said in a BSE filing.
The company said its Red Herring Prospectus filed by Syngene with the Registrar of Companies, Bangalore was approved on July 15, 2015.
As per the draft papers, the company plans to sell 22 million equity shares, including reservation of up to two million shares for Biocon shareholders, through an offer for sale.

While the company did not comment on amount to be raised through IPO, sources said it could be around Rs 600 crore.
The stake dilution will be 11 per cent of the post-issue diluted equity capital of Syngene.

Of the total shares on offer, 50 per cent has been reserved for qualified institutional buyers, 15 per cent for high net worth individuals and the rest for retail investors.
In January, Biocon concluded a sale of 10 per cent stake in Syngene for Rs 380 crore to IVF Trustee Company. The deal had put the entire valuation of Syngene International at Rs 3,800 crore.

Last month, Syngene International had received capital markets regulator Sebi's approval to launch an initial public offer (IPO). The company had filed its draft proposal with Sebi through lead merchant banker Axis Capital in April.
The public listing of Syngene, which offers integrated drug discovery and development services with capabilities in medicinal chemistry, biology, in vivo pharmacology and toxicology has been much-delayed.
The plan had remained in limbo since 2012 due to uncertainties in the global and domestic economic environment. Syngene has a research team of 2,300 scientists.