Biocon rose 3.16% to Rs 468.10 at 15:30 IST on BSE after the government allowed foreign investors to buy up to 44% stake in the company's research subsidiary Syngene International through investment in its initial public offer.
Meanwhile, the BSE Sensex was up 146.15 points, or 0.55%, to 26,832.66.
On BSE, so far 1.26 lakh shares were traded in the counter, compared with an average volume of 1.16 lakh shares in the past one quarter.
The stock hit a high of Rs 471.50 and a low of Rs 453.45 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 16 June 2015, rising 2.82% compared with 2.33% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 6.39% as against Sensex's 6.16% fall.
The mid-cap company has an equity capital of Rs 100 crore. Face value per share is Rs 5.
Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its 218th meeting held on 28 May 2015, the government today, 17 June 2015, approved 16 proposals of foreign direct investment (FDI) amounting to Rs 6750.86 crore approximately.
Among the 16 approvals, the government approved the proposal of Syngene International, research arm of biotechnology major Biocon, for raising the foreign investment to 44% from the approved percentage of 10% by way of initial public offering (IPO) of equity shares to Foreign Institutional Investor (FIIs), Foreign Portfolio Investors (FPIs) and non-resident Indian (NRIs).
According to reports, Syngene International has received capital market 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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