Biocon IPO opens on March 11

28 February 2004

Bangalore: Biocon Ltd''s IPO will be open from March 11 to March 18. The company launched its road show yesterday in Bangalore and will have presentations in Mumbai, Ahmedabad, London, Singapore and Hong Kong before institutional investors, who can pick up to 60 per cent of the issue.

The company will be offering 10 million shares of face value Rs 5 each and the price, to be determined by 100 per cent book-building, would be in the range of Rs 270-315 per share. The offer would form 10 per cent of the fully diluted post-issue paid-up capital, which would be Rs 100 crore. The shares will be listed on the BSE and NSE.

The Chairman and Managing Director, Ms Kiran Mazumdar-Shaw, said the company has pegged its growth on the emerging lucrative generic biopharmaceuticals market that is globally worth $38 billion (Rs 17,200 crore).

Currently, 68 per cent of the shares are held by the promoters including Ms Shaw and Mr John Shaw; 15 per cent has been given as ESOPs; 12 per cent is with private equity investors GW Caps and AIG and five per cent is with other investors.

Ms Shanti Ekambaram, Director, Kotak Mahindra Capital, which is a book-running lead manager along with DSP Merrill Lynch, said the issue by an Indian biotech company was peerless and had to be benchmarked against international players; it had to be rated 15-17 times the per-share earnings for March 2005 of the market leader and the closest peer within the country.