Concord Biotech IPO – the company overview
Concord Biotech IPO may come up this year or early next year. Concord Biotech filed DRHP document with market regulator SEBI on August 12, 2022, for approval. Concord Biotech also received ‘in-principle’ approvals from BSE and NSE for the listing of Equity Shares in both the exchanges. Brief about the company below.
- A leading global developer and manufacturer of select fermentation-based APIs across immunosuppressants and oncology in terms of market share.
- The company is an integrated manufacturer from formulation to API.
- Occupies a market share of 20% across identified fermentation-based API products in 2021.
- 200 customers in 70 countries worldwide including major countries such as the United States, European countries, Japan, and India.
Mr. Sudhir Vaid, is the Promoter, the Chairman, and the Managing Director of the company. Mr. Ankur Vaid, one of our Promoters, the Joint Managing Director, and the Chief Executive Officer of the company.
Read the complete company insights here – “Concord Biotech Limited Company Profile – Key products, finance, management team, strategic insights”
Concord Biotech IPO Financial analysis
The company reported strong revenue from operations of INR 5,123.29 million, INR 6,169.43 million, and INR 7,129.33 million, respectively for the financial years 2020, 2021, and 2022. The top 10 largest customers of the company contribute approximately 60.20%, 48.20%, and 47.66%, respectively for the same periods. This shows the strength of the operation of the company.
Read financial details of the company in the report – “Concord Biotech Limited Company Profile – Key products, finance, management team, strategic insights”
Concord Biotech IPO pricing and issue size
Concord Biotech has filed its Draft Red Herring Prospectus (DRHP) to release its share to the public through an initial public offering (IPO). The company is coming up with an offer for the sale of 20,925,652 equity shares with a face value of INR 1. The promoter of the company Helix Investment Holdings Pte. Limited is selling a part of its stake in the company as an offer for sale. Helix invested in the company on January 16, 2016.
Book Running Lead Managers and registrar of Concord Biotech IPO are
- Kotak Mahindra Capital Company Limited
- Jefferies India Private Limited
- Citigroup Global Markets India Private Limited
- The registrar for this IPO is Link Intime India Private Limited.
The company’s equity shares outstanding before the initial public offer stand at 104,616,204 shares. The face value of the Equity Shares is ₹ 1.00 per Equity Share.
Share Reservations of Concord Biotech IPO among QIBS (Qualified Institutional Buyers), NIBS (Non-Institutional Bidders), AND RIBS (Retail Individual Bidders)
- Not more than 50% of the Offer is available for the QIB portion (of which up to 5% shall be reserved for domestic Mutual Funds)
- No less than 15% of the Offer will be allocated to NIBs
- No less than 35% of the Offer will be allocated to RIBs
Utilization of Net Proceeds from Concord Biotech IPO
The company will not receive any amount from the offer for sale. Concord Biotech IPO is completely offered for sale by one of the investors, Helix. However, the proposed listing of its Equity Shares will enhance the visibility and brand image of the company. Concord Biotech IPO will also help the company to list its shares on the stock exchanges.
Concord Biotech IPO Risk factors
Governments worldwide are focusing on better healthcare facilities. Fundamentally, Concord Biotech Limited is looking good with a strong tailwind from the broader market. The company has strong execution capabilities as well. These factors will benefit the investors of this company in the long term. However, the major risk factors that may affect the company’s performance are as below.
- Though the company has been reducing dependency on a few customers over the years, still the major portion (47.6%) of the total revenue comes from ten customers. Any significant reduction in demand for our products from such customers may adversely affect its business.
- The products of the company are always under scrutiny from the government as well as from the US FDA. Any issue raised by either of the agencies will impact on the operation of the company.
Concord Biotech IPO Details
|Concord Biotech IPO Details||IPO details|
|Subscription Dates||Coming soon|
|Anchor Investor Bidding Date||Coming soon|
|BID/OFFER Opens On||Coming soon|
|BID/OFFER Closes On||Coming soon|
|Price Band||Coming soon|
|Offer for sale||20,925,652 Equity Shares|
|Equity Shares outstanding before the Issue||104,616,204 Equity Shares|
|Minimum bid (lot size)||Coming soon|
|Face Value||INR 1 Per Equity Share|
|Listed on||BSE & NSE|