Rakesh Jhunjhunwala backed Concord Biotech Ltd initial public offering (IPO) opens for subscription on Friday, August 4, and closes on Tuesday, August 8. The company has fixed a price band of Rs 705-741 a share for its initial public offering.
The IPO consists of a pure offer-for-sale of up to 20.93 million shares by Helix Investment Holdings Pte Ltd. On the upper band price, the issue any comes at Rs 1,550 crore and the company is valued at Rs 7,752 crore.
The IPO will close on August 8 and the anchor book opens on August 3. 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. It will list on exchanges on August 18.
Helix Investment Holdings Pte Limited, which is backed by Quadria Capital Fund LP, a healthcare-focused private equity fund in Asia, holds a 20 percent stake in the company, while big bull Rakesh Jhunjhunwala, who passed away last year, through his asset management firm RARE Enterprises (through RARE Trusts) owns 24.09 percent shareholding.
Rakesh Jhunjhunwala and Rekha Jhunjhunwala invested in Concord Biotech in 2004.
The book-running lead managers (BRLM) for the Concord Biotech IPO offer are Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Private Ltd, and Jefferies India Private Ltd, while Link Intime India Private Ltd is the registrar.
Concord Biotech IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.
Concord Biotech IPO GMP today
Concord Biotech IPO GMP or grey market premium is +325. This indicates Concord Biotech share price were trading at a premium of ₹325 in the grey market on Monday, according to topsharebrokers.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Concord Biotech share price is Rs 1,066 apiece, which is 43.9% higher than the IPO price.
In terms of market share, based on volume in 2022, Concord Biotech is an Ahmedabad-based biotechnology business that ranks among the top producers and developers of a select group of fermentation-based APIs used in immunosuppressants and cancer, according to F&S Report.
Concord Biotech exports goods to more than 70 nations, including regulated markets like the United States, Europe, Japan, and India. In 2022, it expects to hold a market share of more than 20% by volume for specific fermentation-based API products like mupirocin, sirolimus, tacrolimus, mycophenolate sodium, and cyclosporine. With presence in 20 states and five union territories in India, Concord Biotech has a total of 387 reactors and 41 industrial blocks, as per F&S Report.
Concord Biotech reported strong financial results for the fiscal year that ended in March FY23, with revenue and profit both up significantly from the prior year—each by 20% and 37.2%, respectively.
