New Delhi: Biotechnology major Biocon has said listing of research services arm Syngene International, in which it has recently sold 7.69 percent stake for Rs 125 crore to an arm of GE Capital, will not happen this financial year.
The company, which was earlier working actively to list Syngene, said it will not happen this fiscal due to economic, global and political uncertainties.
"Right now there are too many uncertainties--global, economic and political. Until that settles, we won't be listing it. It won't be happening in this fiscal, that is for sure," Biocon Chairman and Managing Director Kiran Mazumdar-Shaw told PTI.
Explaining for the reasons behind the stake sale in Syngene she said: "We were interested in listing Syngene in the capital markets but realised that valuations were coming out way below the expectations. We wanted value evaluation to be established. Therefore, we considered potential investors."
GE Equity International Mauritius, a subsidiary of GE Capital, will make a private equity investment in research services arm of Biocon -- Syngene International -- of Rs 125 crore for a 7.69 percent equity share.
Syngene, which offers integrated drug discovery and development services with capabilities in medicinal chemistry, biology, in vivo pharmacology and toxicology, registered sales of nearly Rs 400 crore in FY12.
It has an expert team of over 1,500 scientists to support the research and development programmes of global pharma, biotech and nutrition companies.
When asked about if the company's looking for global tie ups, Shaw said: "We are looking at it. Hopefully, in the near future we'll be able to announce something.