Concord Biotech settles on debut day with 27% gains despite market correction

Concord Biotech sees strong close on debut

India-based biopharma company Concord Biotech's shares saw better-than-expected performance since the opening trade on August 18. This was despite the correction seen in equity markets for several weeks.

The stock rallied 27.23 percent to close at Rs 942.8 on the NSE on listing day, against issue price of Rs 741, and traded with volume of 2.42 crore equity shares.

The stock opened at Rs 900.05 on the exchange, which was also its day's low, and hit an intraday high of Rs 987.70 (up 33.3 percent) in late morning deals.

On the BSE, the stock settled at Rs 941.85, up 27.11 percent, with volume of 15.42 lakh shares.

The stock performance was much higher than analysts' expectations as well as grey market premium, which was around 15 percent over the issue price.

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The positive inspection report by US FDA for company’s manufacturing Unit III at Kheda, Gujarat also boosted sentiment for the stock during the day.

The United States Food and Drug Administration (US FDA) had conducted an inspection at the said manufacturing unit during June 26-30.

The late Rakesh Jhunjhunwala's RARE Trusts-backed biotech pharma company said it has now received the Establishment Inspection Report (EIR) indicating closure of inspection and classifying the facility as "no action indicated" (NAI).

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Based on this inspection and the USFDA NAI classification, this facility is in compliance with regard to current good manufacturing practices (cGMP), it said.

Concord Biotech has raised Rs 1,551 crore via public issue, comprising only an offer for sale of 2.09 crore equity shares by Quadria Capital Fund LP-backed Helix Investment Holdings which exited the company.

The price band for the offer was Rs 705-741 per share.

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