Concord Biotechs Initial Public Offering (IPO) will be available, for subscription from August 4 to 8. The IPO comprises 2.09 crore equity shares, which are being traded at a premium of Rs 325 per share in the Grey market. As a leading company in fermentation-based Active Pharmaceutical Ingredients (APIs), Concord Biotech holds a market share of over 20% in the immunosuppressants and oncology sectors. The IPO proceeds will be directed toward Helix Investment Holdings. There will be no issuance of equity shares. With a Compound Annual Growth Rate (CAGR) of 18%, Concord Biotech has allocated, around 35% for retail investors.
Concord Biotech’s Initial Public Offering (IPO) is set to begin its public subscription phase from August 4 until August 8. Preceding the launch of the IPO, the company’s shares were trading at a premium of Rs 325 in the unlisted market.
As a prominent global producer of specialized fermentation-based APIs (F-APIs) in immunosuppressants and oncology, Concord Biotech has secured a substantial market share exceeding 20% by volume in 2022. Its presence spans the entire fermentation value chain, serving more than 70 countries, including well-regulated markets like the US, Europe, Japan, and India.
In the fiscal year of 2023, the company boasts a portfolio of 23 APIs, constituting 89% of its total revenue. This portfolio is projected to expand further, particularly within the anti-infective and oncology segments.
The IPO, exclusively featuring an offer for the sale of 2.09 crore equity shares amounting to Rs 1,551 crore, will not involve any fresh equity issuance. Helix Investment Holdings, supported by private equity firm Quadria Capital, will divest 2.09 crore equity shares through this offering.
Concord Biotech has stipulated the price range at Rs 705-741 per unit for its public offering. Interested investors can bid for a minimum of 20 shares, with increments thereafter. The allotment is divided, reserving 50% of the offering for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and the remaining 35% for retail investors.
It is important to note that the company will not receive any proceeds from this offering; all funds will be directed to the selling shareholder. Concord Biotech’s financial performance showcases an impressive 18% CAGR in revenue between FY21 and FY23, accompanied by a robust EBITDA margin of 40%. The company’s return on equity (RoE) and return on capital employed (RoCE) stand at 20% and 19% respectively, while maintaining a commendable free cash flow-to-EBITDA ratio of 29% over the past two years.
Facilitating this IPO are the book-running lead managers, namely Kotak Mahindra Capital, Jefferies India, and Citigroup, with Link Intime India serving as the designated registrar.
