Biocon offers 1:1 bonus issue

April 22nd, 2008 - 10:42 pm ICT by admin  

Bangalore, April 22 (IANS) Biopharma major Biocon Ltd Tuesday announced a 1:1 bonus issue to its shareholders, with a view to improving market liquidity of its scrip, listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Biocon chairperson Kiran Mazumdar-Shaw said in a statement here that the company’s strong financial base had enabled its board to recommend issue of bonus shares in the ratio of 1:1.

“We believe the bonus issue will improve market liquidity to support our growing profile as a bellwether stock in the life science sector,” Shaw told reporters after declaring financial results for 2007-08 fiscal and the fourth quarter (January-March).

The 30-year-old Biocon went public in March 2004, with an initial public offering (IPO) of 10 million shares of Rs.5 each. The issue was priced at Rs.315 per share through the book-building process. It was oversubscribed by 32 times and raised Rs.3.15 billion ($78.75 million). Post-issue, the fully diluted paid-up capital is Rs.1 billion.

Qualified institutional buyers were allotted 60 percent of the subscribed issue, while, high net-worth individuals secured 15 percent of the total shares and the remaining 25 percent of the shares were given to retail investors.

For fiscal 2008, the board has also recommended an annual dividend of Rs.3 per equity share (60 percent) and a special dividend of Rs.2 per share (40 percent).

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