First pharma IPO in 5 years: Syngene’s debut offer subscribed 32 times

MUMBAI: The Rs 550-crore initial public offer of Syngene, a research arm of Biocon, was subscribed 32 times on the final day of the offer on Wednesday led by heavy demand from high networth investors and institutions. This is the second-highest subscription to an IPO so far in 2015 after VRL Logistics which was subscribed 74 times.

While the qualified institutional buyers’ category was subscribed 51.5 times, non-institutional investors’ portion, which includes HNIs, saw 90 times subscription. The shares set aside for retail investors was subscribed by nearly 5 times.

The IPO was prices at a band of Rs 240-250. The offer had received bids for 51.28 crore shares against the total issue size of 1.6 crore shares, according to the exchange data.



Syngene IPO, the first by a pharmaceutical company in five years, has raised about Rs 150 crore from the anchor investors. The entire proceeds will go to the selling shareholders including Biocon, as it is an offer for sale. In January, Biocon concluded 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.

Syngene offers integrated drug discovery and development services with capabilities in medicinal chemistry, biology and toxicology. Axis Capital, Credit Suisse Securities (India) and Jefferies India Private are the book running lead managers.