Biopharmaceutical major Biocon Ltd has fixed the price band for the initial public offering (IPO) of its research and development subsidiary Syngene International Ltd at Rs 240-250 per equity share, valuing the clinical services arm at Rs 5,280-Rs 5,500 crore (up to $866 million).
The public issue will open for subscription on July 27 and close on July 29.
Biocon will sell 22 million equity shares in an offer-for-sale issue comprising 10 per cent of the company.
One-tenth of the issue is reserved for existing shareholders of Biocon.
The biopharmaceutical major had announced in January this year that it would list Syngene by selling up to 15 per cent of the unit through the public offer. Since the entire issue comprises an offer-for-sale, the company would not receive any money and the entire amount will go to its parent Biocon.
In September 2014, mid-market private equity firm India Value Fund Advisors (IVFA) picked 10 per cent stake in Syngene for Rs 380 crore, valuing it at Rs 3,800 crore.
It bought the stake from Biocon Research Ltd, a wholly owned subsidiary of Biocon, through purchase of existing shares held by BRL. Post the completion of the transaction, Biocon and BRL jointly hold 85.54 per cent stake in Syngene.
The PE firm would be sitting on an unrealised gain of 45 per cent on its under one-year-old investment at the upper end of the issue price band.
IVFA had previously invested in Biocon in May 2003 and later exited in 2004, soon after the company went public and got listed.
Syngene is a contract research organisation (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.
Axis Capital, Credit Suisse Securities and Jefferies India are the bankers for the proposed IPO.