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Concord Biotech Ltd initial public offering (IPO) opens for subscription on August 4 (Friday) and closes on August 8, 2023 (Tuesday). The price band is set at Rs 705—741 per share. The company’s employees will get a discount of Rs 70 per share to the final issue price.
The issue size is Rs 1551 crore and the IPO comprises of only offer for sale of 2,09,25,652 shares. The face value is set at Re 1 per share and the lot size is 20 shares.
Company Summary
Concord Biotech is a biopharma company and one of the leading global developers and manufacturers of select fermentation-based APIs across immunosuppressants and oncology in terms of market share and based on volume in 2022. The company commanded a market share of over 20% by volume in 2022 across identified fermentation-based API products, including mupirocin, irolimus, tacrolimus, mycophenolate sodium and Cyclosporine. The company has 23 APIs across immunosuppressants, oncology and anti-infectives, and 77 approved products for formulations.
Concord Biotech aims to grow their immunosuppressant API portfolio, which will remain one of the key contributors to its API business in the near future. In addition to their immunosuppressant API portfolio, it also aims to increase the sales of their APIs across other therapeutic areas, especially the following: Anti-bacterial APIs, Anti-fungal APIs, and Oncology drug APIs.
The company has over 200 customers in over 70 countries including regulated markets, such as the United States, Europe and Japan, and India as of March 31, 2023 for its APIs and formulations. In 2016, Concord Biotech launched its formulation business in India as well as emerging markets, including Nepal, Mexico, Indonesia, Thailand, Ecuador, Kenya, Singapore and Paraguay, and have further expanded to the United States.
Concord Biotech has three manufacturing facilities in Gujarat that comprises of API manufacturing facilities in Dholka and Limbasi and a formulation manufacturing facility in Valthera. The company’s total installed fermentation capacity is 1,250 m3.
Company Strengths
- Established presence across the complex fermentation value chain.
- Global leadership in immunosuppressant APIs along with a wide spectrum of complex fermentation-based APIs across multiple therapeutic areas.
- Expansive manufacturing facilities with a consistent regulatory compliance track record and also strong R&D capabilities.
- Diversified global customer base with long-standing relationships with key customers.
- Experienced promoters and management team supported by marquee investors.
- Financial track record of rapid growth and consistent profitability with healthy cash flows and shareholder returns.
Company Financials
Period Ended | FY23 | FY22 | FY21 |
Total Assets (Rs in crore) | 1,513.98 | 1,312.80 | 1,182.55 |
Total Revenue (Rs in crore) | 888.48 | 736.35 | 630.75 |
EBITDA (Rs in crore) | 345.25 | 269.64 | 327.1 |
EBITDA Margin | 40.47% | 37.82% | 53.02% |
Profit After Tax (Rs in crore) | 240.08 | 174.93 | 234.89 |
PAT Margin | 28.14% | 24.54% | 38.07% |
Return on Equity | 20.06% | 16.64% | 26.55% |
Return on Capital Employed | 24.27% | 20.55% | 28.54% |
Purpose of the IPO
The objects of the offer are to achieve the benefits of listing the equity shares on the stock exchanges and sale of up to 2,09,25,652 equity shares by selling shareholder. The company also expects that the proposed listing of its equity shares will enhance our visibility and brand image.
Company Promoters
Sudhir Vaid and Ankur Vaid are the promoters of the company.
IPO Details
IPO Subscription Date | August 4 to August 8, 2023 |
Face Value | Re 1 per share |
Price Band | Rs 705 to Rs 741 per share |
Lot Size | 20 Shares |
Total Issue Size | 20,925,652 shares aggregating up to Rs 1,551 crore |
Offer for Sale | 20,925,652 shares aggregating up to Rs 1,551 crore |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount |
Retail (Minimum) | 1 | 20 | Rs 14,820 |
Retail (Maximum) | 13 | 260 | Rs 1,92,660 |
Small HNI (Minimum) | 14 | 280 | Rs 2,07,480 |
Small HNI (Maximum) | 67 | 1,340 | Rs 9,92,940 |
Large HNI (Minimum) | 68 | 1,360 | Rs 10,07,760 |
Allotment Details
Event | Important Date |
Allotment of Shares | August 11, 2023 |
Initiation of Refunds | August 14, 2023 |
Credit of Shares to Demat Account | August 17, 2023 |
Listing Date | August 18, 2023 |
To check allotment, click here