Concord Biotech IPO To Open On 04 Aug At Rs 705 To Rs 741 Per Share

Ahmedabad-based Concord Biotech has fixed the price band at Rs 705 to Rs 741 per Equity Share for its maiden public offer. The initial public offering of the company will open on Friday, 4th August, 2023, for subscription and will close on Tuesday, 8th August 2023. Investors can bid for a minimum of 20 Equity Shares and in multiples of 20 Equity Shares thereafter.

The Public Issue of face value of Rs 1 per Equity Share is entirely an Offer for Sale (OFS) up to 20.92 million shares by Helix Investment Holdings Pte. Limited. The offer also includes a reservation for a subscription by eligible employees. The company through its IPO will fetch Rs 1475.26 crore - Rs 1550.59 crore at the lower and upper end of the price band.

Concord Biotech is a global supplier of bio-pharmaceutical APIs and formulations, serving more than 70 countries, including regulated markets like the United States, Europe, Japan, and India. 

According to the Frost & Sullivan Report, the company holds an impressive market share of over 20 per cent by volume in 2022 for fermentation-based API products, including mupirocin, sirolimus, tacrolimus, mycophenolate sodium, and cyclosporine. Its substantial success can be attributed to its total installed fermentation capacity of 1,250 m3 as of March 31, 2023.

The company specializes in manufacturing bio-pharmaceutical APIs through fermentation and semi-synthetic processes, with a focus on therapeutic areas such as immunosuppressants, oncology, and anti-infectives. Concord Biotech has a portfolio comprising 23 API products.

The company's revenue from operations increased by 19.67 per cent to Rs 853.17 crore in the Financial Year 2023 from Rs 712.93 crore in the previous year. This growth is primarily attributed to increased sales volume to existing and new customers, as well as certain product price adjustments. 

Additionally, Concord Biotech's profit after tax witnessed a remarkable surge of 37.24 per cent, reaching Rs 240.08 crore in the Financial Year 2023 compared to Rs 174.93 crore in the Financial Year 2022.

Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, and Jefferies India Private Limited are the book-running lead managers and Link Intime India Private Limited is the Registrar to the Offer. The Equity Shares are proposed to be listed on BSE and NSE.