Biocon offers 1:1 bonus issue

Wednesday, 23 April 2008, 17:47 IST
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Bangalore: Biopharma major Biocon 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 5 each. The issue was priced at 315 per share through the book-building process. It was oversubscribed by 32 times and raised 3.15 billion ($78.75 million). Post-issue, the fully diluted paid-up capital is 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 3 per equity share (60 percent) and a special dividend of 2 per share (40 percent).
Source: IANS