Akash Jha
Concord Biotech, a biotechnology company, plans to release its initial public offering (IPO) for subscription on August 4, making it the second public issue starting the next week after SBFC Finance.
Helix Investment Holdings Pte Limited, the private fund managed by Quadria Capital, has made a sole offer for sale (OFS) of 2,09,000,000 equity shares in the public offering.
The public offering for the Ahmedabad-based pharmaceutical company Rare Enterprises, which was backed by private equity firm Quadria Capital and the estate of the late veteran investor Rakesh Jhunjhunwala, will end on 8 August.
On August 3, a day before the issue’s official release, the anchor book will be released for one day.
The news that Concord Biotech plans to go public with an IPO of Rs 1,500-1,600 crore in early August and is hoping for a valuation of $950 million to $1 billion was originally reported by Moneypoise.
Big bull Rakesh Jhunjhunwala, who passed away last year, through his asset management firm RARE Enterprises (through RARE Trusts) owns 24.09 percent shareholding in the company. Helix Investment Holdings Pte Limited is backed by Quadria Capital Fund LP, a healthcare-focused private equity fund in Asia.
The late Rakesh Jhunjhunwala established the Aryavir Jhunjhunwala Discretionary Trust, the Aryaman Jhunjhunwala Discretionary Trust, and the Nishtha Jhunjhunwala Discretionary Trust for his three children.
In 2004, Rakesh and Rekha Jhunjhunwala made a financial investment in Concord Biotech.
The biopharmaceutical firm headquartered in India and operating three manufacturing sites in India will not receive any funds from the public issue, with the exception of issue expenses.
By August 11, after the issue has closed, the corporation will have finalised the basis for allocating IPO shares, and by August 17, successful investors will have seen their demat accounts credited with equity shares.
By August 14, the money owed to the unsuccessful investors will have been deposited into their accounts.
Concord Biotech will be offering shares on the BSE and NSE on August 18. In 2022, the company held a volume share of more than 20% of the market for all identified fermentation-based API products.
By volume in 2022, the biopharma firm will have supplied over 70 nations with a selection of fermentation-based APIs used in immunosuppressants and cancer. There were 23 API (active pharmaceutical ingredient) products available by March 2023.
Concord’s financials for the fiscal year ending in March FY23 were solid, with profit increasing by 37.2% to Rs 240 crore and revenue increasing by 20.2% to Rs 853.2 crore over the prior year.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 27.3% to Rs 343.3 crore, and the margin increased by 240 basis points to 40.2%.
The IPO’s merchant bankers are Kotak Mahindra Capital Company, Citigroup Global Markets India, and Jefferies India, while the IPO’s registrar is Link Intime India.
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