Concord Biotech IPO: Grey market premium suggests strong listing gains

Date : 18/08/2023
Read: 3 mins

Will Concord Biotech IPO pop on listing day? Grey market premium suggests strong gains. Read the complete article to know more.

Concord Biotech IPO to deliver a strong listing

Are you looking for a promising IPO to invest in? If yes, then you might want to consider Concord Biotech, a leading biopharmaceutical company that is set to make its debut on the stock market today. The company has received a strong response from the investors and the grey market premium indicates a positive listing. But how much can you expect to gain from this IPO? And what are the risks involved? In this article, we will explore the details of Concord Biotech IPO and what the grey market premium suggests about its potential.

Highlights:

Strong debut on Dalal Street (21% premium)
Company is backed by Rakesh Jhunjhunwala's RARE Enterprises
Company exports its products to over 70 countries
20% market share by volume in fermentation-based API products

Also Read: Unleashing Rakesh Jhunjhunwala's Dream: Concord Biotech's IPO Debuts August 4. Know the details

What does grey market premium suggest about Concord Biotech IPO?

Yesterday, company’s shares were trading at a premium of Rs 120-125 each, which is about 17 per cent more than its issue price of Rs 741 per share. The grey market premium has improved slightly this week, but it is still much lower than its highest level of Rs 185-190 per share in the previous week.

The stock price opened today at Rs 900.05 and is currently trading at Rs 929.8 (at 11.47 am 18-Aug-23).

Strengths of Concord Biotech

Concord Biotech, a pharma company from Ahmedabad, made a strong debut on D-street with a 21% premium over its IPO price of Rs 741 beating the grey market expectations of 15% listing gains.
The company has a market cap of Rs 9,415 crore and is backed by Rakesh Jhunjhunwala’s RARE Enterprises, which owns 24.09% stake.
The company is a leading manufacturer of biopharmaceutical APIs through fermentation and semi-synthetic processes, focusing on immunosuppressants, oncology and anti-infectives.
The company has three manufacturing facilities and two R&D units in Gujarat, with an installed fermentation capacity of 1,250 m.
The company exports its products to over 70 countries, including the US, Europe and Japan. It also supplies APIs in the domestic market.
The company has a market share of over 20% by volume in fermentation-based API products, such as tacrolimus, mupirocin, mycophenolate sodium, sirolimus, and cyclosporine.

Investors looking for a biopharmaceutical company with a proven track record of growth and profitability might want to consider investing in Concord Biotech. The company has the backing of Rakesh Jhunjhunwala, a renowned investor, and is a leader in biopharmaceutical APIs, which are in high demand worldwide. However, before investing, investors should be aware of the risks involved in the pharma sector, such as regulations, exchange rate fluctuations, and pricing pressures.

Also Read: Jhunjhunwala-backed Concord Biotech IPO opens: Will it be a blockbuster?

Disclaimer: This article is intended for general information purposes only and should not be construed as insurance or investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.