Syngene IPO opens July 27; price band at Rs 240-250; Biocon shares end in red

NEW DELHI: Biocon's subsidiary Syngene International has set the price band for its forthcoming initial public offering at Rs 240-250 per share. Biocon ended the day in red at Rs 483.55, down 0.72%, on the BSE.

The issue will open on July 27 and will be closed for subscription on July 29. The company will hold a press conference, regarding the same, later in the day.

The arm, 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.

At upper price band of the IPO, the 2.2 crore-share issue is expected to raise Rs 550 crore. The proceeds will be used for research & development (R&D).
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.