Strong investor response to Syngene IPO
This article was originally published in Scrip
India's Syngene International has reported strong investor interest to its initial public offering (IPO). Syngene is the research services arm of Biocon.
Syngene said late 29 July that its IPO had been oversubscribed 31 times based on the electronic bid file available on the websites of Indian stock exchanges at 8pm on 29 July.
The Qualified Institutional Bidders subscription stood at 51.47 times while the non-institutional investor subscription was at 90.24 times. The retail subscription was 4.77 times, a company statement said. The issue opened for subscription on 27 July and closed on 29 July.
The price band had been fixed between INR240 ($3.70) and INR250 per equity share. Post issue, Biocon will hold a 74.5% stake in Syngene.
Some investment banking experts had earlier defended Syngene's premium valuations suggesting that they were "fair" and believe that the stock should list at a premium.
Syngene's equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange of India after completing the requisite listing formalities.