Jhunjhunwala-Backed Concord Biotech IPO To Open On August 4, Sets Price Band At Rs 705-741Per Share

Concord Biotech IPO: The initial share sale will be open for public subscription during August 4-8, the Ahmedabad-based firm said

Rakesh Jhunjhunwala's RARE Enterprises-backed Concord Biotech on Monday said it has fixed a price band of Rs 705-741 a share for its Rs 1,550 crore initial public offering (IPO). The initial share sale will be open for public subscription during August 4-8, the Ahmedabad-based firm said, according to PTI.

The IPO is entirely an offer-for-sale (OFS) of 2.09 crore equity shares by Helix Investment Holdings Pte Limited, which is backed by private equity firm Quadria Capital. The offer includes a reservation for subscriptions by eligible employees. The company through its IPO will fetch Rs 1,475.26 crore and Rs 1,550.59 crore at the lower and upper end of the price band, respectively. Investors can bid for a minimum of 20 equity shares and in multiples of 20 equity shares thereafter.

The company has 23 active pharmaceutical ingredients (API) products. It is backed by Quadria Capital Fund and RARE Enterprises, which was set up by billionaire investor Rakesh Jhunjhunwala, who passed away last year. Rakesh Jhunjhunwala and Rekha Jhunjhunwala invested in Concord Biotech in 2004.

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 at Valthera, Dholka, and Limbasi, in Gujarat.

Concord Biotech's revenue from operations rose 20 per cent to Rs 853.17 crore in financial year 2023 from Rs 713 crore in the previous year. Additionally, its profit after tax surged 37 per cent to Rs 240 crore in financial year 2023 compared to Rs 175 crore a year ago. EBITDA (earnings before interest, tax, depreciation and amortisation) jumped 27.3 per cent to Rs 343.3 crore with a margin expansion of 240 basis points at 40.2 per cent during the same period.

Kotak Mahindra Capital Company, Citigroup Global Markets India, and Jefferies India are the book-running lead managers to the issue. The equity shares are proposed to be listed on the BSE and NSE.