Concord Biotech stock lists at 21% premium over IPO price; share price hits Rs 900 at open

Concord Biotech, backed by late Rakesh Jhunjhunwala’s RARE Trusts, kicked off trading with a 21.46 percent premium over its IPO price on August 18, beating the analyst expectation of 15 percent. The stock opened the day at Rs 900.05 on the BSE and NSE, against the public issue price of Rs 741 per share.

Most experts feel the subdued market conditions seen in the last three-odd weeks had some impact on the listing performance. Apart from subdued market conditions, the company not receiving any money from the public issue, and inconsistent financial performance in the past are other reasons listed by them.

The maiden public issue of the Ahmedabad-based pharma company, which comprised only an offer-for-sale (OFS) portion, was subscribed 24.87 times during August 4-8 with qualified institutional buyers (QIBs) buying 67.67 times the allotted quota and high net-worth individuals (HNIs) 16.99 times. The portions set aside for retail investors and employees were subscribed 3.78 times and 24.48 times.

The recent trading premium of the biotech pharma company in the grey market was around 15 percent to the final issue price, which has seen a significant deterioration in the last couple of weeks. After the IPO price band announcement at the beginning of this month, it was quoting at a premium of 35-40 percent over the upper price band.