Ahmedabad-based Concord Biotech, backed by Rakesh Jhunjhunwala's Rare Enterprises, has filed draft papers with the market regulator Securities and Exchange Board of India (Sebi) to collect funds through an initial public offering (IPO), the PTI reported on Wednesday.
According to the report, the IPO of the biotechnology firm is entirely an offer for sale of (OFS) of 2,09,25,652 equity shares by Helix Investment Holdings Pte Limited, which is backed by private equity firm Quadria Capital, the draft red herring prospectus (DRHP) stated.
The offer also includes a reservation for subscriptions by eligible employees.
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 – Valthera, Dholka and Limbasi – in Gujarat.
The company is backed by Quadria Capital Fund and Rare Enterprises, which was set up by billionaire investor Rakesh Jhunjhunwala, along with his wife Rekha.
The veteran stock market investor passed away on Sunday. His latest venture was the Akasa Air, a new budget airline, which started operations this month with a maiden flight from Mumbai to Ahmedabad. Known as "India's Warren Buffet", Jhunjhunwala is valued at $5.8 billion according to Forbes.
Concord Biotech's revenue from operations rose to Rs 713 crore for the financial year 2022 from Rs 617 crore in the preceding financial year. However, profit after tax dropped to Rs 175 crore in FY22 from Rs 235 crore in the previous financial year.
As of March 2022, it had a portfolio of 56 brands and 65 products, including 22 APIs and 43 formulations. In addition, it has filed over 120 drug master files (DMFs) across several countries.
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.