Concord Biotech IPO to open on August 4, price band fixed at Rs 705-741

The initial public offering (IPO) of Concord Biotech will open for subscription on Friday, August 4 and the issue can be subscribed till Tuesday, August 8. The company will be selling its shares in range of Rs 705-741 apiece with a lot size of 20 equity shares and its multiples thereof.

Incorporated in 1984, Concord Biotech is a homegrown research and development (R&D) driven biopharma company. The company is ranked among the leading global developers and manufacturers of select fermentation-based APIs across immunosuppressants and oncology.

The issue consists of an offer for sale of up to 2.09 crore equity shares, which is an entirely an offer-for-sale (OFS) by its selling shareholder Hellix Investment Holdings. At the upper range of the price band, the issue is valued at Rs 1,551 crore. Anchor book for the issue will open on Thursday, August 3.

Being a complete offer-for-sale, the company will not receive any net proceeds from the issue. However, the company has reserved 10,000 equity shares for the employees, who will get a discount of Rs 70 per share.

Watch: Concord Biotech sets IPO price band at Rs 705-741, GMP firm; check IPO dates, lot size, and details of Jhunjhunwala-backed company

Concord Biotech has a global presence, and supplies its products to more than 70 countries including the USA, India, Europe, and Japan. The company manufactures active pharmaceutical ingredients (API) through fermentation & semi-synthetic process and finished formulations. It started with a single product and has grown to become a wide-spectrum solution provider.

For the year ended on March 31, 2023, Concord Biotech had reported a net profit of Rs 240.08 crore with a revenue of Rs 888.48 crore. The company had reported a net profit at Rs 174.93 crore, with a revenue from operations at Rs 736.35 crore in the year ago period.

Not more than 50 per cent of the net issue shall be offered to the qualified institutional bidders (QIBs), while non-institutional investors will get 15 per cent of the offer. Remaining 35 per cent of the equity shares shall be offered to the retail investors.

Kotak Mahindra Capital Company, Citigroup Global Markets India and Jefferies India are the booking running lead managers to the issue, while Link Intime India has been appointed as the registrar to the issue. The shares of the company will be listed on both BSE and NSE, with Friday August 18 as the tentative date of listing. 

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