Know Price, GMP, Reviews, and Other Details Before Buying: Concord Biotech IPO Day 1

The initial public offering (IPO) of Concord Biotech, which is funded by RARE Enterprises and Rakesh Jhunjhunwala, has begun accepting subscriptions and will be offered to bids until August 8th, 2023. The book build issuance is entirely an offer for sale (OFS) and the public issue is intended to generate Rs 1,551 crore. The Concord Biotech IPO price range has been set by the biopharmaceutical business at Rs. 705 to Rs. 741 per equity share.

Dates for the Concord Biotech IPO

The bid period for the biotechnology company’s offer will open on August 4 and close on August 8. On August 3, the anchor book will be available for one day.

Price Band for the Concord Biotech IPO

The offer’s price range has been set at Rs. 705-741 per share.

The size of the Concord Biotech IPO

The pharmaceutical business with its headquarters in Ahmedabad intends to raise Rs 1,550.59 crore via the public offering of more than 2,09 crore equity shares, or 20% of paid-up equity, at the higher price range.

The sole thing included in the offering is an offer-for-sale (OFS) from Helix Investment Holdings Pte Limited, which is supported by Quadria Capital firm LP, an Asian private equity firm with a concentration on the healthcare industry.

Helix will be able to depart through the IPO. Helix spent an average of Rs 227.14 per share to purchase 2.09 crore equity shares. If we take this into account, Helix may have made a profit of Rs 514 per share, or around Rs 1,075 crore, compared to the purchase price of Rs 475.3 crore.

Additionally, 10,000 equity shares were reserved as part of the offer for workers, who would get them at a reduced price of Rs 70 per share.

Concord Biotech IPO: The Issue’s Goal

The primary goal of the issuance is to execute Helix’s offer to sell 2.09 crore equity shares; nonetheless, the firm will not profit financially from the issue.

Lot size for the Concord Biotech IPO

Investors may make a minimum bid of 20 equity shares, and all further bids must be made in multiples of 20 shares. As a result, because they may invest up to Rs 2 lakh in the IPO, individual investors can make a minimum investment of Rs 14,820 for a single lot and a maximum investment of Rs 1,92,660 for 13 lots (260 shares) at the top price band.

For high net worth people, the lowest investment would be Rs 2,07,480 for 14 lots (280 shares), and the highest would be Rs 9,92,940 (67 lots – 1,340 shares).

Half of the offer size has been set aside by the firm for eligible institutional purchasers, such as anchor book, 15% has been set out for high net worth individuals, and the remaining 35% has been set up for regular investors.

Financials for the Concord Biotech IPO

The earnings increased 37.2 percent to Rs 240 crore from the prior year, driven by topline and operational performance, for Concord Biotech’s most recent fiscal year, which concluded in March of FY23. Additionally, during the same time period, operating revenue rose by about 20 percent to Rs 853.2 crore.

In terms of market share, based on volume, Concord Biotech claimed to be one of the top worldwide creators and producers of a few fermentation-based APIs spanning immunosuppressants and cancer in 2022. The business offers its goods in more than 70 nations, including regulated marketplaces.

Today’s Concord Biotech IPO GMP

Market watchers estimate that the Concord Biotech IPO’s grey market premium (GMP) is now Rs 150.

Good or bad for the Concord Biotech IPO?

“At the higher price band, CBL is demanding a P/E multiple of 32.3x (to its FY23 earning), which is at a discount to the peer average,” the Choice Broking report on Concord Biotech’s IPO evaluation said. The therapeutic areas of immunology, cancer, and anti-infective are anticipated to be the main drivers of growth in the worldwide market for fermentation-based APIs. With its extensive selection of sophisticated & specialised APIs, CBL is concentrating on these therapeutic areas. Additionally, given its geographical reach and production capabilities, CBL is well-positioned to profit from the market growth. Consequently, we rate the problem as “SUBSCRIBE”

“In view of strong global footprint, diversified products portfolio, robust in-house R&D capabilities, and experienced management team, we recommend a SUBSCRIBE to the issue,” the Reliance Securities report stated, adding the word “subscribe” to the public issue.