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SEBI gives green signal to Syngene IPO

The company had filed its draft red herring prospectus (DRHP) with Sebi through its lead merchant banker Axis Capital in April, a mandatory process for companies who are planning to launch public offer.

June 15, 2015 8:15 IST | India Infoline News Service
Biocon Limited
SEBI has given the go ahead to Syngene International, research arm of biotechnology major Biocon for the initial public offer (IPO). The company had filed its draft red herring prospectus (DRHP) with Sebi through its lead merchant banker Axis Capital in April, a mandatory process for companies who are planning to launch public offer.

With the recent rally in the pharma sector, the IPO of Syngene has been highly awaited by the market. The company has been one of the best-performing segment of Biocon in the last couple of years. It contributes nearly one-fourth to the total Biocon's revenues.

The company plans to sell 22 million equity shares, including reservation of up to two million shares for Biocon shareholders, through an offer for sale, as per reports.


Syngene is one of the leading India-based contract research organisations (“CRO”), offering a suite of integrated, end-to-end discovery and development services for novel molecular entities (“NMEs”) across industrial sectors including pharmaceutical, biotechnology, agrochemicals, consumer health, animal health, cosmetic and nutrition companies.

For the nine months period ended December 31, 2014, they generated total revenue of Rs. 6,175 million, restated profit of Rs. 1,194 million and EBITDA of Rs. 2,071 million. For the fiscal year ended March 31, 2014, they generated total revenue of Rs. 7,077 million, restated profit of Rs. 1,348 million and EBITDA of Rs. 2,226 million. For the three fiscal years ended March 31, 2014, their total revenue, restated profit and EBITDA grew at a CAGR of 29.9%, 70.5% and 30.6%, respectively.

Earlier in April, the chief of Biocon Kiran Majumdar-Shaw had confirmed that if the approvals come in time, the IPO could happen in July. Of the total shares on offer, 50 per cent has been reserved for qualified institutional buyers, 15 per cent for high net worth individuals and the rest for retail investors, as reports suggest. 

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