The private equity arm of GE Capital is acquiring about 7.69% stake in a subsidiary of Bangalore-based pharma major- Biocon. Syngene International, the contract research organisation (CRO) arm of Biocon, will raise Rs 125 crore from GE Capital through the stake dilution.
The valuation of Syngene has come at Rs 1,625 crore after the deal with GE Capital. The Rs 400-crore Syngene is also looking at an initial public offering (IPO).
Shares of Biocon are traded at Rs 265.35, up by 2.47% on BSE on Wednesday.
Kiran Mazumdar-Shaw, Chairman & Managing Director, Biocon said, “GE Capital’s investment in Syngene, Biocon’s subsidiary, is a validation of our research services business model which has delivered consistent value to our partners as well as other stakeholders. This takes us closer to our commitment of taking Syngene through an IPO at the most opportune time.”
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