Rakesh Jhunjhunwala-backed Concord Biotech Ltd has filed draft papers with the Securities Exchange Board of India to raise funds through an initial public offering.
The IPO consists of a pure offer-for-sale of up to 20.93 million shares or the entire 20 percent stake by its promoter Helix Investment Holdings Pte Ltd, which is backed by Quadria Capital Fund LP, a healthcare-focused private equity fund in Asia. According to the draft papers, Quadria Capital had invested Rs 475.30 crore in 2016 for a 20 percent stake in Concord.
Legendary stock investor Rakesh Jhunjhunwalal, who passed away on Sunday, held over 24 percent stake in the active pharmaceutical ingredients (API) maker through his investment arm Rare Enterprises.
Kotak Mahindra Capital, Citigroup Global Markets India and Jefferies India are the lead managers to the issue.
The India-based biopharma company is one of the leading global developers and manufacturers of select fermentation-based APIs across immunosuppressants and oncology, and supplies to over 70 countries, including regulated markets such as the US, Europe and Japan and India.
As of March 2022, the company had 22 API products. It has filed more than 120 Drug Master Files (DMFs) across several countries for APIs, including 20, 63 and four in the US, Europe and Japan, respectively. It has three manufacturing facilities in Gujarat, comprising API manufacturing facilities in Dholka and Limbasi and a formulation manufacturing facility in Valthera.For FY22, the company posted a revenue of Rs 712.93 crore as against Rs 616.94 crore a year ago. Net profit for the year stood at Rs 174.93 crore versus Rs 234.89 crore last year. Its total borrowings for the period was at Rs 60.59 crore.