Concord Biotech IPO: Concord Biotech shares listed at an 21.5% premium over IPO price on NSE and BSE amid positive domestic market. The share debuted at Rs 819.9 apiece on the BSE, as compared to the issue price of Rs 741. Ahead of the public issue listing, Concord Biotech shares’ GMP rose to Rs 122 per equity share, 16.5% over the upper end of the share price on offer – indicating a positive listing.
Concord Biotech IPO subscription data
Concord Biotech IPO opened for subscription on 4 August and the issue was fully subscribed 24.87 times on the last day of subscription, helped by overwhelming participation from institutional buyers. The Qualified Institutional Buyers (QIBs) category was subscribed 67.67 times, the portion for non-institutional investors received 16.99 times subscription and Retail Individual Investors (RIIs) quota got oversubscribed by 3.78 times. Employees of the company bid 24.48x their portion.
The issue is an Offer-For-Sale (OFS) of 2.09 crore equity shares or a 20% stake in the company. The company intends to use the net proceeds from the IPO to bolster its capital base, catering to its future capital requirements resulting from business and asset growth. For potential investors, the bidding starts at a minimum of 20 equity shares, with subsequent bids in multiples of 20 equity shares.
“At the higher price band, CBL is demanding a P/E multiple of 32.3x (to its FY23 earning), which is at discount to the peer average. Growth in the global market of fermentation-based APIs is expected to be driven by immunology, oncology and anti-infective therapeutic areas. CBL is focusing on these therapeutic areas with its wide range of niche & complex APIs. Moreover, considering its manufacturing capabilities and geographic presence CBL is well placed to benefit from the expansion in the market. Thus, we assign a “SUBSCRIBE” rating for the issue,” said Choice Broking.
About Concord Biotech
Concord Biotech is an India-based R&D-driven biopharma company. The company is ranked among the leading global developers and manufacturers of select fermentation-based APIs across immunosuppressants and oncology in terms of market share, based on volume in 2022. Concord Biotech supplies their products to over 70 countries including the USA, India, Europe, and Japan.