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Biocon to list IVFA-backed India CRO unit

  • Holden Mann
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Indian biopharmaceutical firm Biocon has filed for an IPO for its research arm Syngene International, which is backed by India Value Fund Advisors (IVFA).

According to a filing, Biocon will offer up to 22 million of its own shares for sale, comprising 11% of the company, with two million shares reserved for existing shareholders. The company will not issue any fresh shares, and pricing for the offer has not been announced.

IVFA's stake in Syngene will not be affected by the issue. The firm paid $62 million in September 2014 for a 10% interest, following Biocon's buyback of GE Capital's 7.69% stake. IVFA had previously invested in Biocon in 2003, exiting in 2004 after the company's IPO.

Syngene, founded in 1993, is a leading contract research organization (CRO). It offers research and development services to companies in the pharmaceutical, biotech and agriculture sectors, among others, both in India and worldwide. Its international clients include Bristol-Myers Squibb, Baxter International and Abbott Laboratories.

The company's net profit has risen steadily since 2011, reaching INR1.35 billion ($21.3 million) in the 2014 financial year, up from INR1.02 billion in 2013. Revenue has more than doubled over the last three years. The 2014 figure was INR7.07 billion, up from INR5.54 billion in 2013.

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