The initial public offering (IPO) of Concord Biotech continued to receive a healthy response from investors. The Rakesh Jhunjhunwala's RARE Enterprises-backed issue was subscribed to 1.85 times at 3:00 pm on the second day of bidding, August 7, 2023. It has received bids for 2.70 crore shares against 1.46 crore shares on offer.
Its non-institutional investors' (NII) portion was subscribed to 3.7 times, while the retail investor's quota was subscribed to 1.85 percent, however, the qualified institutional buyers' (QIBs) part was bid 43 percent. The employee portion was subscribed to 12.68 times.
The NII part received bids for 1.16 crore shares versus 31.37 lakh shares on offer while the retail quota received bids for 1.35 crore shares versus 73.20 lakh shares offered. The QIB investor category received bids for 17.89 lakh shares against 41.83 lakh on offer. Finally, the employee portion received bids for 1.26 lakh shares versus the 10,000 shares on offer.
GMP: The company's shares in the grey market are trading at a healthy premium of ₹200 on Monday, August 7, indicating a strong response to the issue, up from ₹150 yesterday, August 6.
However, one must note that grey market premium is only an indicator of how the company's shares are performing in the unlisted market and can change quickly.
The ₹1,551-crore IPO of Concord Biotech opened for subscription on Friday, August 4, and will close on Tuesday, August 8. It has a price range of ₹705-741. The biotechnology company IPO will be the 2nd IPO of August after SBFC Finance.
The issue is entirely an offer-for-sale (OFS) of up to 2.09 crore equity shares or 20 percent of paid-up equity by Helix Investment Holdings. The IPO will give an exit to Helix.
The main objective of the issue is to carry out this offer for sale of 2.09 crore equity shares by Helix. The company will not receive any proceeds from the issue.
Most brokerages have a ‘subscribe’ rating on the issue on the back of fair valuations, strong business model, global presence and healthy financial performance.
Incorporated in 1984, Concord Biotech is a homegrown research and development (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 with a market share of over 20 percent by volume in 2022.
The company has a global presence and supplies its products to more than 70 countries including the USA, India, Europe, and Japan.
The allotment status of the IPO is likely to be finalised on August 11. The company will transfer equity shares to demat accounts of eligible investors by August 17 while unsuccessful investors will get refunds in their bank accounts by August 14.
Concord will make its debut on the BSE and NSE on August 18.