Wednesday, October 31, 2012

GE Capital values Biocon's subsidiary Syngene at 1625 crores or 30% of Biocon current M.Cap

GE Capital would be investing 125 crores for a 7.69% stake in Biocon's s subsidiary Syngene Syngene provides drug discovery services to pharmaceutical and biotechnology companies. We believe with this dilution, Biocon has moved one step closer to an IPO of Syngene.

At 1625 crores, Syngene is valued at 4.1 times trailing revenues. In the first half 2013, Syngene revenues were up 40% and were 250 crores. Historically Syngene has generated 30% EBITDA, and assuming the same levels of EBITDA today, on an EV/EBITDA basis the deal is worth 13.5 times