the Rs 1,551-crore initial public offering (IPO) of Concord Biotech saw a strong response from the investors during the third and final day of the bidding process. The issue was overall subscribed 2.72 times at the end of the second day of the bidding. The issue kicked off for subscription on Friday, August 04.
Concord Biotech is selling its shares in the range of Rs 705-741 apiece during the three-day bidding process and investors can make a bid of a minimum of 20 equity shares and its multiples thereafter. The issue is entirely an offer-for-sale of up to 20,925,652 crore equity shares by its selling shareholder Hellix Investment Holdings
According to the data, the investors made bids for 20,85,42,020 equity shares, or 14.23 times, compared to the 1,46,50,957 equity shares offered for the subscription by 2.30 pm on Tuesday, August 08, 2023. The issue closes for subscription today.
The portion of qualified institutional bidders (QIBs) was subscribed 33.43 times quota, while the allocation for non-institutional bidders fetched 14.05 times. The portion of employees was booked 22.45 times, whereas quota for retail investors was booked 3.33 times as of the same time.
Incorporated in 1984, Concord Biotech is a homegrown research and development (R&D) driven biopharma company. The company is ranked among the leading global developers and manufacturers of select fermentation-based APIs across immunosuppressants and oncology, marking its presence in more than 70 countries including India, Japan, US and Europe.
Majority of the brokerage firms are positive on the issue and have suggested subscribing to the issue citing its strong business model, global presence and in-line valuations. However, a few analysts have suggested avoiding the issue citing its limited upside potential, complete OFS nature and dependency of large clients.
“We like Concord Biotech given its complex product portfolio, presence in niche space, strong client relationship and high entry barriers. The issue is valued at 32 times P/E in line with the peer group’s average. We believe it could benefit from the industry tailwinds given its PLI approval in place,” said Motilal Oswal Financial Services with a buy rating.
Ahead of its IPO, Concord Biotech raised Rs 464.95 crore from anchor investors by allocating them 62,74,695 shares at Rs 741 apiece, said a BSE circular. Anchor investors included the government of Singapore, Abu Dhabi Investment Authority, Government Pension Fund Global, Polar Capital Funds, HSBC Mutual Fund, WF Asian Reconnaissance Fund and Amundi Funds among others.