Biocon to file for Syngene unit's IPO in two months

According to sources, the IPO could fetch up to Rs 1,000 cr

Biotechnology firm Biocon Limited could file a prospectus for a share listing for its research services business arm Syngene International within the next two months, two sources directly involved in the process said.

The initial public offering (IPO) could fetch up to Rs 1,000 crore ($159.8 million), said one of the sources.

However, the sources did not specify how much was being sold in Syngene. Biocon had said in January it was looking to sell up to 15 per cent of its stake via an  IPO. Biocon last year sold a 10 per cent stake in Syngene to private equity fund Silver Leaf Oak, valuing Syngene at Rs 38,000 crore.

Biocon owns an 85.54 per cent stake in Syngene, India’s largest provider of contract research services to the pharmaceutical industry.

The IPO  for Syngene will be managed by Credit Suisse, Axis Bank and Jefferies, according to the sources. A Biocon spokeswoman did not immediately respond to a request for comment. Biocon shares closed up eight per cent at Rs 469.30 in Mumbai on Tuesday, while the wider market closed down 0.02 per cent.