Syngene makes strong debut on the bourses, jumps 24%

MUMBAI: Syngene International, a research arm of biotech major Biocon, made a strong debut on the bourses on Tuesday. The stock closed at Rs 310.40, a 24% premium to its initial public offer ( IPO) issue price of Rs 250 a share. This is the third-best debut on the stock exchanges so far this year after Inox Wind and VRL Logistics IPOs which listed at a premium of 23% and 40%, respectively.

Syngene’s market capitalisation on the listing day was Rs 6,208 crore, more than double of the multinational pharma companies such as AstraZeneca Pharma or Novartis. The stock is currently trading at 26 times one-year forward earnings. The Rs 550-crore IPO of Syngene was subscribed 32 times last month, led by demand from high networth investors and institutions.

The issue was subscribed more than 32 times, including 51 times in the qualified institutional buyers’ segment and 90 times in the non-institutional segment. Syngene shares hit a high ofRs 318.20 during the day on the BSE. Shares of parent Biocon fell 1% toRs 461.90. Motilal Oswal Financial Services, in a report released on Tuesday, has recommended ‘buy’ for the stock and set the target price of Rs 350 per share.