Concord Biotech IPO, the issue comprises only an offer for sale (OFS) by Helix Investment Holdings Pte Limited, which is backed by Quadria Capital Fund LP, a healthcare-focused private equity fund in Asia.
Big bull Rakesh Jhunjhunwala’s RARE Enterprises-backed Concord Biotech IPO will be the second public issue in the mainboard segment, opening for subscription this week after SBFC Finance.
Important details on Concord Biotech IPO
Few things to keep in mind before subscribing for the Concord Biotech IPO offer:
Concord Biotech IPO date
Concord Biotech IPO date for bidding will start from August 4, while the Concord Biotech IPO closing date would be on August 8. The anchor book will open for a day on August 3.
Concord Biotech share price
The price band for the offer has been fixed at Rs 705-741 per share and the final Concord Biotech share price will be on the issue opening date.
Concord Biotech IPO’s magnitude
Concord Biotech Pharma Company is planning to raise Rs 1,550.59 crore from the public issue of over 2.09 crore equity shares or 20 percent of paid-up equity, at the upper price band.
The offer also included reservation of 10,000 equity shares for employees, who will get those shares at a discount of Rs 70 per share.
Concord Biotech IPO’s purpose
The main objective of the issue is to carry out this offer for sale of 2.09 crore equity shares by Helix, while the company will not receive any money from the issue.
Minimum lot for bid
The minimum bid by investors can be made for 20 equity shares and in multiples of 20 shares thereafter. Accordingly, the retail investors can make minimum investment of Rs 14,820 for single lot and their maximum investment would be Rs 1,92,660 for 13 lots (260 shares) at upper price band, as they can invest up to Rs 2 lakh in the IPO.
About Concord Biotech products
With three manufacturing facilities in Gujarat (India) and two DSIR-approved R&D units, the Concord Biotech manufactures bio-pharmaceutical APIs through fermentation and semi-synthetic processes, across the therapeutic areas of immunosuppressants, oncology and anti-infectives. Formulations, which are used in the therapeutic areas of immunosuppressants, nephrology drugs and anti-infective drugs for critical care. By March 2023, it had 23 API products.
The company supplies products to over 70 countries including regulated markets.
Concord Biotech products include mupirocin, sirolimus, tacrolimus, mycophenolate sodium and cyclosporine.
Concord Biotech products are bought by API customers include Intas Pharmaceuticals and Glenmark Pharmaceuticals.
Financials of Concord Biotech
Concord Biotech has registered healthy financial numbers for the last financial year ended March FY23, with the profit rising 37.2 percent to Rs 240 crore compared to the previous year. And the revenue from operations increased by nearly 20 percent to Rs 853.2 crore during the same period.
Concord, which trades at a P/E of 32.3x on FY23 financials, compares itself with Divis Laboratories (at P/E of 54.15x), Suven Pharmaceuticals (30.08x), and Laurus Labs (23.70x), while its return on equity was better than peers.
Risk Factors biding for Concord Biotech IPO
Here are key risk factors:
- Any manufacturing or quality control issues may attract regulatory action, affecting the business.
- A slowdown or shutdown in manufacturing or research and development operations could adversely affect the business.
- Limited number of customers for a substantial portion of revenues.
- Extensive government regulations.
- It is subject to risks arising from exchange rate fluctuations.
- Competitive industry.
- Delay or failure of contracts may adversely affect the business.
- Exposed to government price controls that may change from time to time
Concord Biotech IPO date of allotment and listing
Concord Biotech IPO date for finalization of basis of allotment of IPO shares will take place on August 11, and the company will transfer equity shares to demat accounts of eligible investors by August 17. Unsuccessful investors will get refunds in their bank accounts by August 14.
Concord Biotech IPO date of debut on the BSE and NSE will be on August 18.
Bankers for Concord Biotech IPO
Kotak Mahindra Capital Company, Citigroup Global Markets India, and Jefferies India are the merchant bankers to the offer, while Link Intime India is acting as the registrar to the issue.
