Rakesh Jhunjhunwala backed Concord Biotech Ltd has fixed a price band of Rs 705-741 a share for its initial public offerings that will open on August 4 for bidding.
The IPO consists of a pure offer-for-sale of up to 20.93 million shares by Helix Investment Holdings Pte Ltd. On the upper band price, the issue any comes at Rs 1,550 crore and the company is valued at Rs 7,752 crore.
The IPO will close on August 8 and the anchor book opens on August 3. The company will finalise the basis of the allotment of IPO shares by August 11, and the equity shares will be credited to the demat accounts of successful investors by August 17. It will list on exchanges on August 18.
Helix Investment Holdings Pte Limited, which is backed by Quadria Capital Fund LP, a healthcare-focused private equity fund in Asia, holds a 20 percent stake in the company, while big bull Rakesh Jhunjhunwala, who passed away last year, through his asset management firm RARE Enterprises (through RARE Trusts) owns 24.09 percent shareholding.
Rakesh Jhunjhunwala and Rekha Jhunjhunwala invested in Concord Biotech in 2004.
Concord Biotech commands a market share of over 20 percent by volume in 2022 across identified fermentation-based API products. The biopharma company manufactures select fermentation-based APIs across immunosuppressants and oncology in terms of market share, based on volume in 2022, supplying to over 70 countries including regulated markets. By March 2023, it had 23 API (active pharmaceutical ingredients) products.
On the financials front, Concord registered healthy earnings for the year ended March FY23 with profit growing 37.2 percent to Rs 240 crore and revenue increasing 20 percent to Rs 853.2 crore compared to the previous year.
EBITDA (earnings before interest, tax, depreciation and amortisation) jumped 27.3 percent to Rs 343.3 crore with a margin expansion of 240 basis points at 40.2 percent during the same period.
Kotak Mahindra Capital Company, Citigroup Global Markets India, and Jefferies India are the merchant bankers for the IPO, while Link Intime India is the registrar of the offer.
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