Foreign investment limit raised to 44 per cent
Syngene International, a leading India-based contract research organisation (CRO) and a subsidiary of Biocon, has received the Foreign Investment Promotion Board (FIPB) approval for raising the foreign investment to 44 per cent from the earlier approved 10 per cent by way of its Initial Public Offering (IPO).
Commenting on the development, Peter Bains, Chief Executive Officer, Syngene International said, “We are happy to receive the FIPB approval to increase the foreign investment limit in our company. Syngene supports the global pharma, biotech and life science industries. This approval will enable us to look to broaden our global investor base.”
The IPO is an offer for sale (OFS) by Biocon of a part of its shareholding in Syngene. The Biocon Group presently holds 83.6 per cent equity stake in Syngene. Syngene reported revenues of Rs 7,077 million for FY 2013-14 and Rs 6175 million for nine month ended December 31, 2014. For the three fiscal years ended March 31, 2014, its total revenue, restated profit and EBITDA grew at compounded annual growth rates (CAGR) of 29.9 per cent, 70.5 per cent and 30.6 per cent, respectively. Its flexible business models, expertise in managing large integrated collaborations and world-class infrastructure has not only helped it renew and expand its existing client collaborations but also in attracting new clients. Syngene’s client base increased 90 per cent from 103 in FY 2012 to 195 as on December 31, 2014.
It has long term multi-disciplinary partnerships with three of the world’s leading global healthcare organisations, Bristol-Myers Squibb Co. BMS, Abbott Laboratories (Singapore) and Baxter International and has set up dedicated R&D Centres for each of them. The dedicated R&D Centre of BMS is its largest R&D presence in Asia with more than 400 scientists.
On January 12, 2015, Biocon Research transferred a 10 per cent stake in Syngene to IVF Trustee Company for a consideration of ` 3,800 million. The equity shares are proposed to be listed on the BSE and the National Stock Exchange of India.
EP News Bureau – Mumbai