Syngene trades weak after nearly 6% equity changes hands via block deals

Shares of Syngene International traded 1 per cent lower at Rs 573.95 at 10:14 AM after nearly 6 per cent of the company’s equity changed hands via block deals on the BSE on Tuesday.

At 09:15 am; around 22.68 million equity shares representing 5.65 per cent of the total equity of Syngene changed hands on the BSE at price of Rs 585.80, the exchange data shows. The names of the buyers and sellers are not ascertained immediately.

The stock opened 3 per cent lower at Rs 561.75 against its previous close of Rs 578.75 on the BSE. It hit a high of Rs 599 and a low of Rs 559 in intra-day trades so far, the exchange data shows.

As on June 30, 2022, of the total promoters’ holding of 70.29 per cent, Biocon held 69.99 per cent stake in Syngene, the shareholding pattern data shows.

In the past one week, Syngene has underperformed the market by falling 4 per cent, as compared to 0.30 decline in the Sensex. In the past one year, the stock has declined 8 per cent, as against 1.8 per cent gain in the benchmark index. It had hit a 52-week low of Rs 508 on February 22, 2022.

Meanwhile, Biocon had hit a 52-week low of Rs 290.75 on Monday. In the past one week, the stock has slipped 6 per cent, while in the past one year it has fallen 19 per cent.

Syngene is engaged in a single operating segment of providing contract research and manufacturing services. The company in its FY22 annual report said that the fundamentals of the Company’s Small Molecule Contract Development and Manufacturing Organization (CDMO) Services are robust with an integrated platform for development and commercial manufacturing.

The company’s focused on new chemical entities (NCEs) and molecule flow through from Discovery Services and from early stage to late-stage clinical trials is expected to drive capacity utilization. The commercial manufacturing facility is expected to ramp up utilization post USFDA approval expected in H2FY24, Syngene said.

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