Plan to list Syngene in August, use IPO proceeds for R&D: Kiran Mazumdar-Shaw

MUMBAI: Pharmaceutical major Biocon hopes to get its subsidiary Syngene listed in August, after getting the nod from market regulator Sebi.

Syngene International, present in the contract services business, had filed its draft red herring prospectus (DRHP) with Sebi through its lead merchant banker Axis Capital in April.

Kiran Mazumdar-Shaw, CMD, Biocon, in an interview to ET Now, said, the company will be filing RHP for Syngene IPO in July and hopes to get it listed in August.

Syngene IPO is an offer for sale by Biocon and the proceeds from IPO will be used for research & development.

Biocon currently owns 85.5 per cent stake in Syngene and is looking to divest 11 per cent stake through the IPO.

Syngene is planning capex of $200-250m for expansion, new capacity and greenfield expansion over the next five years. It has net debt of Rs 40 crore on balance sheet currently. Its FY15E EPS stands at Rs 8/share.