The Rekha Jhunjhunwala-backed Concord Biotech IPO consists of a pure offer-for-sale (OFS) of 2,09,25,652 equity shares by Helix Investment Holdings Pte Ltd.
Concord Biotech IPO: On August 4, the public will be able to sign up for Concord Biotech Ltd’s first public offering (IPO). Concord is an Indian biopharma company that was founded in 1984.
Based on volume in 2022, Concord is one of the world’s top developers and manufacturers of certain fermentation-based APIs used in immunosuppressants and oncology.
This week, Concord Biotech will have its initial public offering. Here are some of the most important things to know about the IPO of Concord Biotech.
Concord Biotech IPO: Key Things to Know
Concord Biotech IPO Dates: The IPO for Concord Biotech starts on August 4 and ends on August 8. Finalising the allocation is likely to happen on August 11, and refunds will start on August 14. On August 17, the shares will be added to the Demat accounts of investors who are qualified.
IPO Price Band: The price range for the general offering is between 705 and 741 per share.
IPO Size: The company hopes to get between 1,498 crore and 1,551 crore from the IPO. Concord Biotech’s IPO amount is 1,551 crore at the high end of the price range. The company is worth about 7,752 crore after the IPO.
Issue Details: Helix Investment Holdings Pte Ltd. made a straight offer-for-sale (OFS) of 2,09,25,652 equity shares as part of the IPO for Concord Biotech, which was backed by Rekha Jhunjhunwala.
Lot Size: The smallest amount an investor can put into the IPO of Concord Biotech is 14,820, which is equal to 20 shares.
IPO Lead Managers: Kotak Mahindra Capital, Citigroup Global, and Jefferies India are the book-running lead managers for the deal.
IPO Registrar: The person in charge of registering the Concord Biotech IPO is Link Intime India Pvt Ltd.
Key shareholders: The company is 20% owned by Helix Investment Holdings Pte Ltd. Quadria Capital Fund LP, an Asian private equity fund with a focus on healthcare, backs Helix Investment Holdings.
Rakesh Jhunjhunwala held 24.09% of the company through his asset management company, RARE Enterprises, which is now in the name of Rekha Jhunjhunwala.
Concord Biotech IPO Reservation: 50% of the shares in the public offering have been set aside for Qualified Institutional Buyers (QIB), 15% have been set aside for Non Institutional Investors (NII), and 35% have been set aside for Retail Investors. Up to 10,000 equity shares are set aside for the company’s workers, who can buy them for 70 less each.
Concord IPO Listing: Concord Biotech shares are expected to be listed on August 18 on BSE and NSE.
Concord Biotech IPO GMP today
The grey market premium, or GMP, for Concord Biotech’s IPO today is 260 per share. According to figures on IPOWatch, this means that the price of Concord Biotech shares was 260 higher on the grey market on Tuesday. The GMP has gone down since Monday, when it was 325.
Taking into account the upper end of the IPO price range and the present grey market premium, the estimated listing price of Concord Biotech shares is 1,001 each, which is 35% more than the IPO price.
Concord Biotech Financials
At the end of March 31, 2023, Concord Biotech’s net profit was 240.08 crore, which was up from 174.93 the previous year.
As of March 2023, the company’s operating income was 853.17 crore, which was up from 712.93 crore the year before.
About Concord Biotech
Concord is one of the few companies in the world that has built and grown fermentation-based API manufacturing skills in a way that is both successful and sustainable.
In 2022, the company had a total market share of over 20% for fermentation-based APIs like mupirocin, sirolimus, tacrolimus, mycophenolate sodium, and cyclosporine.
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As of June 30, 2023, Concord made 57 names and 77 products, including 23 active pharmaceutical ingredients (APIs) and 53 formulations. Also, as of March 31, 2023, they were distributing 80 out-licensed formulations in India under their own names.
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