Biocon Biologics IPO

Biocon Biologics IPO: Syngene

Biocon Biologics IPO

Generally, Biopharmaceutical company Biocon noted as the parent company of Biocon Biologics. The subsidiary company Biocon Biologics IPO might set a way to launch in the nearby future.

Mr. Kiran Mazumdar-Shaw, Chairperson of Biocon quoted that they would raise a little more private equity preceding to IPO.

Besides this, about 60% of the parent Biocon’s market capitalization of around $5 billion comprises of Biocon Biologics in the latest fundraising. Also, the subsidiary Syngene, excluding minority shareholders stake, remained valued at $1.4 billion. However, the rest of the businesses including small molecules and domestic formulations remained valued at $600 million.

Analysts evaluated Biocon Biologics at more than 10 times. So then, expected revenues of Rs 2,000 crores in 2020. In 2019, its revenue stood at Rs 5,658.8 crores.

Syngene raised private equity money. Later, it was followed by an IPO, letting investors exit. Syngene came about listed in August 2015. So then, it raised Rs 550 crores with 32 subscriptions. Co-incidentally, True North exists as an investor in Syngene.

Despite this, the company aims at a target of $1 billion by FY22.

Significantly, the company has a product portfolio of pipelines, including 11 with Mylan. Also, some with Sandoz and also developing many independently.

In the latest research note, Kotak Securities stated that they expect another round of PE investment in the company that might result in the Biocon stake dropping to 90%.

Furthermore, the note added that the PE investment stood in expectations. Yet, they still had the struggle for funding in Biocon Biologics.  

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