Biocon, a leading biotechnology company, today announced that its contract research subsidiary Syngene International has filed that draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on April 22, 2015, seeking approval for an initial public offering (IPO).

This is an offer for sale (OFS) by Biocon of a part of its shareholding in Syngene. Biocon along with its subsidiary Biocon Research currently holds an 84.5% 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% of the post offer paid-up equity share capital of the company.

Commenting on the development, Kiran Mazumdar-Shaw, chairperson & managing director, Biocon said, ''Syngene has a proven track record of providing quality NME discovery, development and manufacturing services. It has long-standing partnerships with three of the world's leading global healthcare organizations, including Bristol-Myers Suibb Co and 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.''

Shares of the company declined Rs 1.1, or 0.26%, to settle  at  Rs 424.10.  The total volume of shares traded  was  146,855 at  the BSE (Thursday).