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Review By Dilip Davda on July 17, 2015
Subsidiary of Biocon Ltd, Syngene International Ltd (SIL) is coming out with its maiden IPO via book building process offer for sale from existing stakeholders. It is offering 22000000 equity share of Rs. 10 each in a price band of Rs. 240-250 and thus mulls mobilizing Rs. 528-550 crore on at the basis of lower and upper price band. Out of the offer, 2000000 equity shares are kept reserved for preferential allotment to Biocon shareholders. Issue opens for subscription on 27.07.15 and will close on 29.07.15. Minimum application is to be made for 60 shares and in multiples thereon, thereafter. Funs mobilized will be utilized for the capex planned by Biocon Ltd. for developing its biosimilars and enhancing the manufacturing capacities. SIL is a niche player from India in CRAM segment and is confident of having benefit from the growth in global markets.
SIL is engaged in contract based discovery, development and manufacturing at its ultra modern world class research and development facility. 95% of its revenue comes from global clients and the rest from domestic clients. As claimed in RHP by promoters and merchant bankers, there are no listed peers to compare with. The company has made two bonus issues in the ratio of 7.3 for every 1 share held (on 28.02.12) and 6.1 shares for every 1 share held (on 27.03.15). It issued equity at par during May 1994- March 2000 and thereafter in a price range between Rs. 80 to Rs. 1353.80 (on FV of Rs. 10 basis) during June 2000-March 2015. In fact shares issued during first quarter of calendar year 2015 has an effective cost of Rs. 190 per share on post bonus basis. Thus asking price is at 25% premium to last issue price and at a P/E of 27 plus based on concluded fiscal earnings per share of Rs. 8.89. These beings offer for sale, equity remains same post IPO that constitutes 11% dilution of post offer equity that remains at Rs. 200 crore.
On performance front, for the last three fiscals, the company has posted growth in revenue and EBITDA margins at a CAGR of 25% and 32% respectively with an average EPS of Rs. 7.74 (on diluted basis). Its turnover / net profit are Rs. Rs. 554.20 crore/Rs. 102.10 crore (FY 2013), Rs. 707.70 crore/Rs. 134.80 crore (FY 2014) and Rs. 871.60 crore/Rs. 175.00 crore (FY 2015).
BRLM to this offer for sale are Axis Capital Ltd, Credit Suisse Securities (India) Pvt Ltd and Jefferies India Pvt Ltd. Karvy Computershare Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE and NSE.
Syngene Intl Ltd - Modest investment recommended
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Author has no plans to invest in this offer.
Review By Dilip Davda on July 17, 2015
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on the information published here. My reviews do not cover GMP market and operators game plans. Any reader taking decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. The author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The initial public offer (IPO) of Syngene International Ltd offers an early investment opportunity in Syngene International Ltd. A stock market investor can buy Syngene International IPO shares by applying in IPO before Syngene International Ltd shares get listed at the stock exchanges. An investor could invest in Syngene International IPO for short term listing gain or a long term.
Read the Syngene International IPO recommendations by the leading analyst and leading stock brokers.
Syngene International IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Syngene International IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Syngene International IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Syngene International IPO.
The Syngene International IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Syngene International IPO allotment status to check.
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