The IPO That Everyone's Talking About: Concord Biotech IPO Opens on August 4

The IPO That Everyone's Talking About: Concord Biotech IPO Opens on August 4. Is this the next big thing in Indian pharma? Read the article to know all the important points.

Rakesh Jhunjhunwala’s firm-backed Concord Biotech IPO opens on August 4

Get ready for an exciting opportunity in the world of biotech investments as Concord Biotech (backed by Rakesh Jhunjhunwala's firm) IPO opens its doors on August 4. With the IPO set to run until August 8, investors have a chance to be part of this groundbreaking venture. The price band for each equity share has been set at Rs. 705 to Rs. 741, offering a range of options for potential investors. This article delves deep to discuss all the key factors that you should consider before investing.

  • IPO Opens August 4, Closes August 8
  • Price Band: ₹705-₹741 per Share
  • Profit +37.2%, EBITDA +27.3%
  • 20% market share, 70+ countries, 23 products

Also Read: SEBI approves Vaibhav Gems and Concord Biotech IPOs. Read about the company and the IPO

Concord Biotech IPO offers a lucrative opportunity for investors who want to benefit from the growth potential of the biopharma sector. The company has a strong market position, product portfolio, financial performance, and backing from Rakesh Jhunjhunwala. The IPO is attractively priced and commands high grey market premium. However, investors should also be aware of the risks such as regulatory uncertainties, competition, and currency fluctuations.

Factors to consider before investing

  • Company is a biopharma company that manufactures select fermentation-based APIs across immunosuppressants and oncology.
  • In 2022 the company had market share exceeding 20% by volume and supplies to over 70 countries, including regulated markets.
  • Company had 23 API products by March 2023.
  • The company's earnings grew by 37.2% to Rs 240 crore, and revenue increased by 20% to Rs 853.2 crore for FY23.
  • EBITDA rose 27.3% to Rs 343.3 crore, margin increased 240 bps to 40.2%.

Key features of the IPO are given below:

  • Company’s IPO opens on August 4 and closes on August 8.
  • The price band is set between ₹705 to ₹741 per equity share.
  • The lot size for the IPO is 20 equity shares, with multiples of 20 thereafter.
  • The IPO consists of a pure offer-for-sale by Helix Investment Holdings Pte Ltd.
  • Rakesh Jhunjhunwala owns 24.09% of the company through RARE Enterprises.
  • The book-running lead managers for the IPO are Kotak Citigroup Global Markets India Private Ltd, Jefferies India Private Ltd, and Mahindra Capital Company Ltd.
  • The IPO reserves 50% of shares for Qualified Institutional Buyers, 15% for Non-Institutional Investors, and 35% for Retail Investors.
  • The basis of allotment will be finalised on August 11, with refunds initiated on August 14, and shares credited to demat accounts on August 17.
  • The grey market premium for the IPO is +325.

Also Read: Rakesh Jhunjhunwala: Top Investing Advice from Mogul of Dalal Street

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax advice.

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