Rakesh Jhunjhunwala's firm-backed Concord Biotech set to launch IPO in early August: Report

Ahmedabad-based biotechnology firm Concord Biotech, which is supported by late ace investor Rakesh Jhunjhunwala's firm Rare Enterprises and private equity firm Quadria Capital, is gearing up to launch its IPO in early August, said a report on Wednesday.

The company has filed an updated draft red herring prospectus (UDRHP) with SEBI recently, and the IPO is expected to be introduced in the first or second week of August, reported Moneycontrol. Concord Biotech aims to achieve a valuation between $950 million to $1 billion with this initial public offering.

The size of the IPO is reportedly around Rs 1,500 crore to Rs 1,600 crore, and it will consist entirely of an OFS (offer for sale). The offering will comprise up to 20.93 million shares, representing the entire 20 percent stake held by Helix Investment Holdings Pte Ltd, which is backed by Quadria Capital Fund LP.

Concord is among the leading manufacturers of fermentation-based biopharmaceutical APIs focused on niche segments, such as immunosuppressant, oncology, anti-fungal and anti-bacterial. It has three manufacturing facilities -- Valthera, Dholka, and Limbasi -- in Gujarat.

The firm is a prominent global developer and manufacturer of fermentation-based active pharmaceutical ingredients (APIs) in immunosuppressants and oncology, holding a significant market share based on volume in 2021. Concord Biotech offers 22 APIs across immunosuppressants, oncology, and anti-infectives, along with 43 formulations across various therapeutic areas.

The Ahmedabad-based biopharma firm held a portfolio of 56 brands and 65 products, including 22 APIs and 43 formulations as of March 2022. In addition, it has filed over 120 drug master files (DMFs) across several countries.

Its financial performance over the years has been noteworthy, with total revenue from operations reaching Rs 712.93 crore in 2022, representing a CAGR of 17.96 percent from 2020 to 2022. The firm reported profits of Rs 174.92 crore during the same period.

The immunosuppressant drug market is expected to grow at a CAGR of 9.6% from 2021 to 2026, while the oncology drug market, being the largest segment in the API market, is anticipated to reach $67 billion by 2026. Concord Biotech appears well-positioned to capitalise on the growth potential in these markets.

Quadria Capital, a healthcare-focused private equity fund in Asia, has shown significant interest in Concord Biotech. Previously, Quadria Capital had invested Rs 475.30 crore in 2016 to acquire a 20 per cent stake in the company.

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