Concord Biotech IPO: Jhunjhunwala-backed Concord IPO sets price band at ₹705-741

 by Priya Jadhav

Concord Biotech Ltd initial public offering (IPO) opens for subscription on Friday, August 4, and closes on Tuesday, August 8. The allocation to anchor investors for Concord Biotech IPO is scheduled to take place on Thursday, August 3. Concord Biotech IPO price band has been fixed in the range between ₹705 to ₹741 per equity share of face value of ₹1 each. Concord Biotech IPO lot size is 20 equity shares and in multiples of 20 equity shares thereafter.

Rekha Jhunjhunwala-backed Concord Biotech IPO consists of a pure offer-for-sale by Helix Investment Holdings Pte Ltd. of up to 20.93 million shares. The issue offer is priced at ₹1,550 crore on the upper band, and the firm is worth ₹7,752 crore.

20% of the company is owned by Helix Investment Holdings Pte Ltd, which is backed by Quadria Capital Fund LP, an Asian private equity fund with a focus on healthcare. Rakesh Jhunjhunwala owned 24.09% of the company through his asset management company RARE Enterprises (via RARE Trusts), which is now in the name of Rekha Jhunjhunwala. In 2004, Rekha and Rakesh Jhunjhunwala made an investment in Concord Biotech.

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 date

Concord Biotech IPO's basis of allotment of shares will be finalised on Friday, August 11 and the company will initiate refunds on Monday, August 14, while the shares will be credited to the demat account of allottees on Thursday, 17 August. Concord Biotech IPO shares are likely to be listed on BSE and NSE on Friday, August 18.

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 ₹1,066 apiece, which is 43.9% higher than the IPO price.

'Grey market premium' indicates investors' readiness to pay more than the issue 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.