Concord Biotech IPO: Check subscription status, GMP and other details

economictimes.indiatimes.com:

Ahead of the IPO, the company has raised Rs 465 crore in the anchor round, which saw participation from marquee foreign and domestic institutional investors, including The government of Singapore, Abu Dhabi Investment Authority, Government Pension Fund Global, UTI Mutual Fund, DSP Mutual Fund, SBI Life among others. Concord, which is backed by Quadria Capital Fund and Rakesh Jhunjhunwala's Rare Enterprises, is one of the leading global manufacturers of select fermentation-based APIs (F-APIs) across immunosuppressants and oncology with a market share of over 20% by volume in 2022. The IPO is completely an offer for sale of 2.09 crore equity shares up, aggregating up to Rs 1,551 crore.

There is no fresh equity issue in the IPO. Analysts advised investors to subscribe to the issue given its complex product portfolio, presence in niche space, strong client relationship and high entry barriers. The company is present across the fermentation value chain, and supplies to over 70 countries including regulated markets, such as US, Europe and Japan, and India.

As of FY23, the company had 23 APIs (89% of revenue), which it aims to increase further, especially in anti-infective/oncology segments. The company has fixed the price band at Rs 705-741 per share for its public offer. Investors can bid for a minimum of 20 shares and in multiples thereafter.

About 50% of the offer is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NII) and the rest 35% for retail investors. Concord recorded an 18% CAGR in revenue over FY21-23 with an EBITDA margin of 40%. Its return ratios are healthy with RoE/RoCE of 20% and 19% and it generated free cash flow over the last two years with FCF/EBITDA at 29%.Kotak