Home / Companies / Syngene gets FIPB nod to raise foreign investment limit to 44%

Mumbai: Syngene International Ltd, the research arm of Biocon Ltd, has received Foreign Investment Promotion Board nod to raise foreign investment in the company to 44% from 10% through an initial public offer (IPO).

Last week, Syngene had won the approval of the capital markets regulator Securities and Exchange Board of India for launching an IPO comprising sale of 22 million equity shares held by Biocon. The Biocon Group currently holds 83.6% equity stake in Syngene.

“We are happy to receive the FIPB approval to increase the foreign investment limit in our company. Syngene supports the global pharmaceutical, biotech and life science industries; this approval will enable us to look to broaden our global investor base," said Peter Bains, chief executive officer, Syngene International.

Syngene reported revenue of 707.7 crore for 2013-14 and 617.5 crore for the nine-month ended 31 December 2014. Syngene has long term multi-disciplinary partnerships with three of the world’s leading global healthcare organisations—Bristol-Myers Squibb Co. (BMS), Abbott Laboratories (Singapore) Pte. Ltd. and Baxter International Inc. and has set up research and development centres for each of them, according to a company release.

In January 2015, India Value Fund Advisors Private Ltd (IVFA) had picked 10% stake in Syngene for 380 crore. The stake was acquired from Biocon Research Ltd, a wholly-owned subsidiary of Biocon, valuing Syngene at 3800 crore. Silver Leaf Oak (Mauritius) Ltd, an investment vehicle advised by IVFA, acquired the stake in Syngene.

In 2012, GE Equity International Mauritius, a subsidiary of GE Capital, acquired about 8% stake in the company for 125 crore, which was bought back by Biocon for 215.4 crore in September 2014.

Syngene offers integrated drug discovery and development services and has an expert team of over 2,300 scientists, according to the company website.

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