Concord Biotech IPO: All you need to know
The initial public offering (IPO) of Concord Biotech Ltd begins on Friday, August 4, and ends on Tuesday, August 8. The IPO price band is set at Rs. 705 to Rs. 741 for each equity share with a lot size equal to 20 equity shares. Concord Biotech IPO shares are likely to be listed on BSE and NSE on Friday, August 18.
Concord Biotech IPO GMP or grey market premium is +325 rupees. Grey market premium indicates investors' readiness to pay more than the issue price. Hence, Concord Biotech's share price was trading at a premium of ₹325 in the grey market on Monday.
Concord Biotech IPO: About the firm
Incorporated in 1984, Concord Biotech Limited is an India-based R&D-driven biopharma company. The company is ranked among the leading global developers and manufacturers of Active Pharmaceutical Ingredients (APIs).
Concord Biotech has a global presence. They are supplying their products to over 70 countries including the USA, India, Europe, and Japan. With a presence in 20 states and five union territories in India, Concord Biotech has a total of 387 reactors and 41 industrial blocks.
Concord Biotech IPO Details:
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. 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.
| IPO Date | 4th Aug 2023 to 8th Aug 2023 |
| Basis of Allotment Date | 11th Aug 2023 |
| Listing Date | 18th Aug 2023 |
| Lot Size | 20 shares |
| Issue Price | Rs. 705 to Rs. 714 per equity share |
| Total Issue Size (Offer for Sale) | 20,925,652 shares (aggregating up to Rs. 1,551 crores) |
(source: DRHP)
Concord Biotech IPO Reservation:
| QIB Shares Offered | 50% |
| NII (HNI) Share Offered | 15% |
| Retail Shares Offered | 35% |
(source: DRHP)
Concord Biotech IPO Book-Running Lead Managers (BRLM):
- Kotak Mahindra Capital Company Limited
- Citigroup Global Markets India Private Limited
- Jefferies India Private Limited
Concord Biotech IPO Financial Analysis:
| Particulars | 31 March 2021 (in Rs. crores) | 31 March 2022 (in Rs. crores) | 31 March 2023 (in Rs. crores) |
| Total Income | Rs. 630.75 crores | Rs. 736.35 crores | Rs. 888.48 crores |
| Total Expenses | Rs. 317.57 crores | Rs. 495.19 crores | Rs. 568.42 crores |
| Net Profit | Rs. 234.84 crores | Rs. 174.37 crores | Rs. 240.34 crores |
(source: DRHP)
Concord Biotech: Peer Analysis
| Concord Biotech IPO Peer Comparison | Face Value (Rs. per share) | Revenue from operations FY 2023 (Rs. in million) | EPS Basic FY 2023 (Rs.) | EPS Diluted FY 2023 (Rs.) | P/E | RONW FY2023 (%) | NAV as at March 31, 2023 (Rs.) |
| Concord Biotech | 1 | 8,537.68 | 22.95 | 22.95 | - | 20.06% | 123.31 |
| Listed Peers | |||||||
| Divi’s Laboratories Limited | 2 | 77,675.10 | 68.69 | 68.69 | 54.15 | 14.28% | 480.93 |
| Suven Pharmaceuticals Limited | 1 | 13,403.29 | 16.16 | 16.16 | 30.08 | 23.70% | 68.16 |
| Laurus Labs Limited | 2 | 60,405.50 | 14.69 | 14.64 | 23.70 | 19.68% | 75.16 |
| Shilpa Medicare Limited | 1 | 10,501.12 | -3.74 | -3.74 | N.A. | N.A. | 204.41 |
(source: DRHP)
This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.