Biocon's Contract Research subsidiary Syngene International, established in 1993, has filed the Draft Red Herring Prospectus (DRHP) with SEBI for an initial public offering of 22 million equity shares of Rs.10 each through 100 per cent book built process. Currently, Biocon and its subsidiary is holding 84.5 per cent equity stake in Syngene. 'Offer for Sale' constitutes 11 per cent of post-offer paid-up equity share capital.

Axis Capital Ltd, Credit Suisse Securities (India) Pvt Ltd and Jefferies India Pvt Ltd will be Book Running lead managers. Shares will be listed on BSE and NSE. The offer includes a reservation of 2 million shares for Biocon's public equity shareholders.

Syngene has reported revenues of Rs.708 crore for the year ended March 2014 and a net profit of Rs.135 crore. For the first nine months ended December 2014, its sales amounted to Rs.618 crore with EBDIT of Rs.207 crore. During the nine months period ended December 31, 2014, it serviced 195 clients including seven of the top 10 global pharmaceutical companies by sales for 2014.

Kiran Mazumdar-Shaw, chairperson and managing director, Biocon, said, “Syngene has a proven track record of providing quality NME discovery, development and manufacturing services. It has long-standing partnerships with three of the world's leading global healthcare organisations, including Bristol-Myers Squibb Co and has attracted equity participation from India Value Fund recently, which is reflective of the scale, the value and the quality of the differentiated business model of Syngene.”

“We are unlocking value from Syngene to fund our R&D programmes, which include a rich pipeline of biosimilars and novel biologics. This fund infusion will help accelerate these programmes which are at various stages of development currently.” Mazumadar-Shaw added.

Peter Bains, CEO, Syngene, said, “Over the years, Syngene has built an integrated end-to-end discovery and development platform to service its partners across various industry segments. We further intend to evolve from a CRO into a full-fledged Contract Research & Manufacturing Services company providing additional forward integration opportunities to our clients.”

Syngene has commenced the process of establishing a new commercial-scale facility in Mangalore to manufacture novel small molecules for innovator companies in pharmaceutical, agrochemical and other industrial sectors. It has also expanded its current small molecule manufacturing facilities in Bangalore to meet the interim manufacturing needs of is clients.