This is an offer for sale (OFS) by Biocon of a part of its shareholding in Syngene.

Biocon along with its subsidiary Biocon Research Limited (BRL) currently holds an 84.5 percent equity stake in Syngene.

Biocon is offering to sell up to 22 million equity shares of face value of Rs 10 each, through Syngene's IPO.

The offer includes a reservation of 2 million equity shares for Biocon's public equity shareholders, being individuals and HUFs.

The offer would constitute 11 percent of the post offer paid-up equity share capital of the Company.

Syngene has reported revenues of Rs 7,077 million for the previous financial year ended March 31, 2014 and Rs 6,175 million for the nine months period ended Dec 31, 2014.

Commenting on the development, Dr Kiran Mazumdar-Shaw, CMD, Biocon, said, ".....Syngene has attracted equity participation from India Value Fund recently, which is reflective of the scale, the value and the quality of the differentiated business model of Syngene."

"We are unlocking value from Syngene to fund our R&D programs, which include a rich pipeline of biosimilars and novel biologics. This fund infusion will help accelerate these programs which are at various stages of development currently," she added.

Syngene has commenced the process of establishing a new commercial-scale facility in Mangalore to manufacture novel small molecules for innovator companies in pharmaceutical, agrochemical and other industrial sectors.

It has also expanded its current small molecule manufacturing facilities in Bangalore to meet the interim manufacturing needs of its clients.

Additionally, it is in the process of expanding its large molecule manufacturing capabilities by establishing a new unit in Bangalore.

On January 12, 2015, Biocon Research Limited (a wholly owned subsidiary of Biocon) transferred a 10 percent stake in Syngene to IVF Trustee, sole trustee of India Value Fund IV, for a consideration of Rs 3,800 million.

The Equity Shares being offered are proposed to be listed on the BSE and the National Stock Exchange of India post necessary consents and approvals being received.