Rs 65 Million Investment Sparks Interest in Renewable Energy Acquisition by Subsidiary of Biocon

Syngene International Limited has a market capitalization of over Rs 28,000 crore, a 1-year return of 3 per cent, a 3-year return of 25 per cent and a PE ratio of 60.

Syngene International Limited has announced a strategic investment in O2 Renewable Energy II Private Limited, marking a significant move into the renewable energy sector. The company has entered into an amendment to the Share Subscription/Purchase and Shareholders Agreement with O2 Renewable Energy II Private Limited, aiming to acquire renewable power. This acquisition involves a cash consideration of Rs 65 million, increasing Syngene’s stake in O2 to 33.79 per cent.

The primary objective of this acquisition is to enhance renewable-based power consumption, ensuring Syngene maintains a minimum 26 per cent stake in O2 throughout the term of the Power Purchase Agreement to maintain captive status as per the Electricity Act. O2 Renewable Energy II Private Limited, incorporated in December 2021, operates a 201.2 MW Wind-Solar Hybrid power plant in Karnataka. The acquisition aligns with Syngene's strategic priorities to diversify its energy sources and strengthen its commitment to sustainability.

Syngene International Limited, established in 1993 as a subsidiary of Biocon, is India's first Contract Research Organization (CRO) that has evolved into a comprehensive service provider offering drug discovery, development, and manufacturing services. The company operates across 1.9 million square feet of research and manufacturing infrastructure, serving over 400 active customers, including 13 of the top 15 global pharmaceutical companies.

Syngene's operations are divided into four key business divisions: Discovery Services, Drug Development Services, Manufacturing Services, and Dedicated R&D Facilities. The company has a significant geographical presence, with the USA contributing 73% of its revenues in FY22. Recent strategic initiatives include the acquisition of a biologics manufacturing facility from Stelis Biopharma Ltd, which will enhance its manufacturing capabilities. Syngene's commitment to innovation is evident in its continuous expansion of laboratory capacities and strategic collaborations with major clients like Amgen and BMS.

As of March 25, 2025, Syngene International Limited's stock price is Rs 744. The stock's 52-week high is Rs 960 per share and its 52-week low is Rs 608 per share. Syngene International Limited has a market capitalization of over Rs 28,000 crore, a 1-year return of 3 per cent, a 3-year return of 25 per cent and a PE ratio of 60.

Disclaimer: The article is for informational purposes only and not investment advice.