Late ace investor Rakesh Jhunjhunwala-backed Concord Biotech Ltd has fixed a price band of Rs 705-741 a share for its initial public offering (IPO). On the upper band price, the issue any comes at Rs 1,550 crore, and the company is valued at Rs 7,752 crore
Concord Biotech IPO will open on August 4 for bidding, and close on August 8. The anchor book will open on August 3 (Thursday). The company will finalise the basis of the allotment of IPO shares by August 11, and the equity shares will be credited to the demat accounts of successful investors by August 17. The company is likely to list on BSE, NSE on August 18
Concord Biotech shares were commanding a handsome grey market premium (GMP) of around Rs 325-Rs300 apiece on Monday. The IPO consists of a pure offer-for-sale of up to 20.93 million shares by Helix Investment Holdings Pte Ltd, which holds a 20% stake in the company.
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Rakesh Jhunjhunwala and Rekha Jhunjhunwala invested in Concord Biotech in 2004. Big bull Rakesh Jhunjhunwala, who passed away last year, through his asset management firm RARE Enterprises (through RARE Trusts) owns 24.09% stake in Concord Biotech
Being a complete offer-for-sale, the company will not receive any net proceeds from the issue. However, the company has reserved 10,000 equity shares for the employees, who will get a discount of Rs 70 per share
Not more than 50% of the net issue shall be offered to the qualified institutional bidders (QIBs), while non-institutional investors will get 15% of the offer. Remaining 35% of the equity shares shall be offered to the retail investors
Incorporated in 1984, Concord Biotech is a homegrown research and development (R&D) driven biopharma company. The company is ranked among the leading global developers and manufacturers of fermentation-based biopharmaceutical APIs focused on niche segments, such as immunosuppressant, oncology, anti-fungal and anti-bacterial
Concord Biotech had filed its preliminary IPO papers with Sebi in August last year, and obtained their observation letters on November 28, 2022. The company has three manufacturing facilities -- Valthera, Dholka, and Limbasi -- in Gujarat. Kotak Mahindra Capital Company, Citigroup Global Markets India and Jefferies India are the booking running lead managers to the issue, while Link Intime India has been appointed as the registrar to the issue
Concord Biotech has a global presence, and supplies its products to more than 70 countries including the USA, India, Europe, and Japan. The company manufactures active pharmaceutical ingredients (API) through fermentation & semi-synthetic process and finished formulations. It started with a single product and has grown to become a wide-spectrum solution provider
For the year ended on March 31, 2023, Concord Biotech had reported a net profit of Rs 240.08 crore with a revenue of Rs 888.48 crore. The company had reported a net profit at Rs 174.93 crore, with a revenue from operations at Rs 736.35 crore in the year ago period