SEBI clears Prabhat Dairy, Syngene International IPO plans

The capital markets regulator Securities and Exchange Board of India (SEBI) has given its approval to the proposed initial public offerings (IPOs) of Prabhat Dairy Ltd and Syngene International Ltd, according to a disclosure.

The two companies had filed their respective draft red herring prospectus (DRHP) with SEBI in April this year.

Ahmednagar-based Prabhat Dairy, an integrated milk and dairy products company catering to institutional as well as retail customers, plans to raise up to Rs 300 crore (around $48 million) via fresh issue of shares.

The IPO will also consist an offer for sale of up to 14.7 million by investors and promoters, up to 3.15 million equity shares by Nirmal Family Trust (promoters), up to 6.58 million equity shares by The India Agri Business Fund Ltd (managed by Rabo Equity Advisors or Rabo India PE), up to 23,000 by The Real Trust and up to 4.95 million shares by French DFI Proparco.

Incorporated in 1988, Prabhat Dairy markets dairy products under Prabhat, Flava and Milk Magic brands. It is a regional player with operations mainly in Maharashtra like most private peer group firms.

On the other side, the proposed IPO of biopharmaceutical major Biocon Ltd's research and development arm Syngene will see its public-listed parent selling 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.

Since the entire issue comprises an offer-for-sale, the company would not receive any money and the entire money will go to its parent Biocon.

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.

It is also backed by India Value Fund Advisors.

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