29-Jul-2023
2 mins read
The Initial Public Offering (IPO) for Concord Biotech has been scheduled, set to launch on August 4th and conclude on August 8th, 2023. The company aims to raise Rs 1551 crore through a full offer for sale. The public offering will include 20,925,652 equity shares, each valued at Rs 10. The allocation for retail investors has been set at 35%, with 50% designated for Qualified Institutional Buyers (QIB) and High Net Worth Individuals (HNI) receiving a 15% quota.
Concord Biotech Limited Product Portfolio
Concord Biotech Limited, a biopharmaceutical firm focused on research and development, was founded in India in 1984. By 2022, it had secured a noteworthy global presence, primarily in the production and development of certain APIs derived from fermentation, predominantly used in immunosuppressants and oncology treatments. With a worldwide operational footprint, Concord Biotech exports its products to over 70 nations, including key markets like the United States, India, Europe, and Japan.
The firm’s wide-ranging portfolio features the manufacture of APIs through fermentation and semi-synthetic processes, as well as the development of finished formulations. From its humble beginnings with a single product, the company has broadened its scope to provide an array of solutions.
Concord Biotech showcases an impressive range of manufacturing prowess across diverse therapeutic segments such as immunosuppressants, antibiotics, antifungal treatments, and cancer drugs. This comprehensive product catalogue has garnered a global customer base, and the company consistently sustains a robust line-up of products under active development.
The Objectives of Concord Biotech Limited IPO
The primary goals of this public offering are two-fold. Firstly, it seeks to attain the advantages associated with listing the company’s equity shares on stock exchanges. Secondly, it aims to facilitate the Offer for Sale, which involves up to 20,925,652 equity shares proposed by the existing shareholder.
About the IPO
The forthcoming public issue is composed solely of an Offer for Sale (OFS) of approximately 2.09 crore equity shares, which will be put forth by Helix Investment Holdings Pte Limited, a private fund overseen by Quadria Capital. This move signifies Helix’s departure from the company.
Concord Biotech, an Ahmedabad-based pharmaceutical firm, which enjoys support from the private equity entity Quadria Capital and Rare Enterprises, the investment firm led by the late seasoned investor Rakesh Jhunjhunwala, is set to wrap up its public issue on August 8th. The anchor book is set to be unveiled for a single day on August 3rd, just before the opening of the issue.
The public offering, which makes up 20 per cent of the post-offer paid-up equity capital, includes a reserved portion of up to 10,000 equity shares specifically for the company’s employees.
A significant 50 per cent of the issue has been set aside for qualified institutional buyers, which encompasses the anchor book. An additional 15 per cent of the issue has been set aside specifically for high-net-worth individuals, otherwise known as non-institutional investors, while the final 35 per cent has been allocated for retail investors. Helix Investment Holdings Pte Limited, which is currently supported by Quadria Capital Fund LP, a private equity fund concentrating on healthcare in Asia, possesses a 20 per cent stake in the company. The late renowned investor Rakesh Jhunjhunwala, via his asset management firm RARE Enterprises (through RARE Trusts), owned a 24.09 per cent shareholding.
Once the issue concludes, Concord Biotech will finalize the allotment basis of the IPO shares by August 11th, and the equity shares will be transferred to the demat accounts of successful investors by August 17th.
Those who do not receive an allotment will receive their refunds by August 14th in their respective bank accounts. Concord Biotech, which in 2022 held a market share exceeding 20 per cent by volume across specified fermentation-based API products, is set to list its shares on the BSE and NSE on August 18th.
Financial Performance of Concord Biotech Limited (In Crore)
| Period Ended | 31-Mar-21 | 31-Mar-22 | 31-Mar-23 |
| Assets | 1,182.55 | 1,312.80 | 1,513.98 |
| Revenue | 630.75 | 736.35 | 888.48 |
| Profit After Tax | 234.89 | 174.93 | 240.08 |
| Net Worth | 999.37 | 1,103.22 | 1,290.00 |
| Total Borrowing | 86.35 | 60.59 | 31.24 |
Important Dates for Concord Biotech Limited IPO (Tentative)
| IPO Date | Aug 4, 2023 to Aug 8, 2023 |
| Listing Date | Friday, 18 August 2023 |
| Face Value | Re 1 per share |
| Price | ₹705 to ₹741 per share |
| Lot Size | 20 Shares |
| Total Issue Size | 20,925,652 shares |
| Offer for Sale | 20,925,652 shares of Re 1 |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Timetable of Concord Biotech Limited IPO
| IPO Open Date | Friday, 4 August 2023 |
| IPO Close Date | Tuesday, 8 August 2023 |
| Basis of Allotment | Friday, 11 August 2023 |
| Initiation of Refunds | Monday, 14 August 2023 |
| Credit of Shares to Demat | Wednesday, 16 August 2023 |
| Listing Date | Thursday, 17 August 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on Aug 8, 2023 |
Concord Biotech Limited IPO Lead Manager(s)
The Lead managers for Concord Biotech Limited IPO are:
- Kotak Mahindra Capital Company Limited
- Citigroup Global Markets India Private Limited
- Jefferies India Private Limited
Promoters of the Company
The promoters of the company are Sudhir Vaid and Ankur Vaid.
How to Apply for Concord Biotech Limited IPO
Wait for the public issue to open for subscription, then click on this link to apply for the Concord Biotech Limited IPO with Bigul https://ipo.bonanzaonline.com/.
How to Check Allotment Status of Concord Biotech Limited IPO
The registrar forConcord Biotech Limited IPO is Link Intime India Private Ltd. To check your allotment status, please click on this link https://linkintime.co.in/
FAQs
- What is the purpose of the Concord Biotech Limited IPO?
The primary objectives of this IPO are to list the company’s equity shares on the stock exchanges and to facilitate the Offer for Sale of up to 20,925,652 equity shares by the existing shareholder.
- Who are the lead managers for the Concord Biotech Limited IPO?
The lead managers for the IPO are Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, and Jefferies India Private Limited.
- Who are the promoters of Concord Biotech Limited?
The promoters of the company are Sudhir Vaid and Ankur Vaid.
- How can I apply for the Concord Biotech Limited IPO?
Once the public issue opens for subscription, you can apply for the Concord Biotech Limited IPO through this link: https://ipo.bonanzaonline.com/.
- How can I check the allotment status for the Concord Biotech Limited IPO?
The registrar for the Concord Biotech Limited IPO is Link Intime India Private Ltd. You can check your allotment status via this link: https://linkintime.co.in/
- What is the offer for sale in the Concord Biotech Limited IPO?
The offer for sale in the IPO is 20,925,652 shares of Re 1 each.
- What is the allocation of shares in the Concord Biotech Limited IPO?
50% of the issue is reserved for Qualified Institutional Buyers, 15% for High-Net-Worth Individuals, and 35% for retail investors.