Biocon’s IPO to be priced between Rs 270 to Rs 315

EPP News Bureau - Bangalore

Biocon, the 25 year old India’s largest fully integrated biopharmaceutical company, is entering the capital market with its Initial Public Offering (IPO). The first Indian biotech company to launch public offer, has opted for the 100 per cent book building method for efficient price discovery. The price band has been fixed at Rs 270 - Rs 315 per equity share of face value of Rs five.

The IPO will comprise fresh issue of an aggregate of 10 million equity shares. The issue will open on March 11, 2004 and close on March 18, 2004.

The Offer would constitute 10 per cent of the fully diluted post issue paid up capital of the company. Biocon will list the equity shares on the Stock Exchange, Mumbai and National Stock Exchange of India Ltd. The post-issue paid up capital of Biocon will be Rs one billion.

DSP Merrill Lynch Ltd and Kotak Mahindra Capital Company Ltd, are the Book Running Lead Managers to the Issue with HSBC Securities and Capital Markets (India) Pvt Ltd being the co-book running lead manager to the Issue.

Financial advisors to the company are Allegro Capital Advisors Pvt Ltd. ‘‘We intend to utilise the IPO proceeds for setting up new facilities to augment submerged fermentation and chemical synthesis capacity and skills in order to effectively meet the growing demand for biopharmaceutical products such as statins,’’ Kiran Mazumdar Shaw, chairman and managing director, Biocon said.