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Biocon IPO from March 11-18

Our Bureau

Bangalore , Feb. 26

BIOCON Ltd, the first domestic biotechnology company to go public, will open its IPO process on March 11 and keep the books open for a week till March 18.

The company began its pre-offer road show today in Bangalore and will take it on to Mumbai, Ahmedabad, London, Singapore and Hong Kong before institutional investors, who can pick up to 60 per cent of the issue. Biocon will be listed on the BSE and NSE.

The company will be offering 10 million fresh 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 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.

The company is focussing on new generation drugs such as statins; recombinant human and oral insulin; cancer drugs and immunosuppressants used by organ transplant patients.

The proceeds of the issue would be used to finance Biocon's expansion of submerged fermentation and chemical synthesis capacity.

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, Ranbaxy.

Set up in 1978, Biocon made consolidated revenues of Rs 399 crore and net profits of Rs 95 crore for the nine-month period ended December 31, 2003. Syngene and Clinigene are its two wholly-owned subsidiaries.

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