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Concord Biotech Limited IPO – Price, Lot size, Open date, GMP & Review

Written by - Marisha Bhatt

August 2, 2023 7 minutes

You would have heard the term APIs during the Covid-19 pandemic and the struggle to acquire them by even developed countries like the US and across Europe. They are the base for pharmaceutical drugs, therefore, have a huge demand in the pharma sector. The pandemic also made the world recognize India as the world’s pharmacy giving a further boost to the domestic pharma sector. Investors have the opportunity to be part of the growth story of this sector in the form of a new IPO by Concord Biotech Limited IPO, an API manufacturing and selling company. 

Concord Biotech Limited IPO will open for subscription from 4th August 2023 to 8th August 2023.

Here are all the important details of Concord Biotech Limited, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.

Read More: Top Pharma Stocks to invest 

IPO Details 

The key details of Concord Biotech Limited are as under. 

  1. IPO Size 

The size of the IPO and different categories of the issue are:

CategoryDetails
IPO Opening Date4th August 2023 
IPO Closing Date8th August 2023
ListingNSE, BSE
Issue TypeBook Built Issue IPO
Face Value of sharesRe. 10 per share
IPO Price BandRs. 705 – Rs. 741 per share
IPO SizeRs. 1,551 crores (20,925,652 shares)
Offer for Sale Rs. 1,551 crores (20,925,652 shares)
Fresh Issue0
  1. IPO Dates 

The important dates for Concord Biotech Limited IPO are highlighted below:

EventDate
Opening date4th August 2023
Closing Date8th August 2023
Allotment date11th August 2023
Refund Date14th August 2023
Share Credit Date17th August 2023
Listing Date18th August 2023
  1. IPO Lot Sizes 

Investors can subscribe to Concord Biotech Limited shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below: 

CategoryDetails
Investments in lots Minimum – 1 lot
Maximum – 13 lots
Investment amount Minimum – Rs. 14,100 – 14,820
Maximum – Rs. 1,92,660
Shares Minimum – 20
Maximum – 260
  1. IPO Reservation

Here’s the summary of reservation for different applicant categories in this IPO:

Category of InvestorReservation Percentage
Retail Individual Investors 35%
QIB (Qualified Institutional Buyers)50%
NII (Non-Institutional Bidders)15%

Concord Biotech Limited IPO Objectives

This IPO is an Offer for Sale. The objective of the IPO is to get the listing benefits and carry out the Offer for Sale of up to 20,925,652 Equity Shares by the selling shareholder.

Top things to know about Concord Biotech Limited IPO

Established in 1984, Concord Biotech Limited is a biopharmaceutical company based in India that prioritises research and development in its operations. Renowned for its expertise in fermentation-based APIs within the immunosuppressant and oncology segments, the company has attained a prominent global standing and market share in terms of volume in 2022.

What started as a single product has evolved into a comprehensive range of solutions, making Concord Biotech a versatile solution provider. The company specializes in the production of Active Pharmaceutical Ingredients (APIs) using fermentation and semi-synthetic processes, as well as finished formulations, and has a strong presence in over 70 countries including key markets like the USA, India, Europe, and Japan.

Did you know

Late stock investor Rakesh Jhunjhunwalal’s asset management arm Rare Enterprises, holds approx 24% stake in Concord Biotech Ltd.

Concord Biotech’s product portfolio includes fermentation and semi-synthetic-based offerings in therapeutic segments such as Immunosuppressants, Anti-bacterial, Oncology, Antifungals, and more. The diverse range of products has garnered widespread customer acceptance globally. Additionally, the company has an ambitious pipeline of products currently under development, ensuring continued growth and innovation.

Watch our in-depth video on Concord Biotech IPO Analysis

Financials of the company

Concord Biotech Limited’s financials are given in the table below:

Year Total Assets (Rs. in cr)Total Revenue (Rs. in cr)Profit after Tax (Rs. in cr)Basic EPS Return on Net Worth
Mar-20231,514853240Rs.22.9520.06%
Mar-20221,313723175Rs.16.7216.64%
Mar-20211,182617235Rs.22.45 26.55%

(Source: RHP)

Strengths of the company

Some of the key strengths of Concord Biotech Limited IPO that investors can take note of are

CategoryDetails
Business model The company has a strong presence across the complex fermentation value chain and also has scaled manufacturing facilities, a proven record of regulatory compliance, and robust R&D capabilities.They also have global leadership in the manufacture of immunosuppressant APIs along with a wide spectrum of complex fermentation-based APIs across multiple therapeutic areas.The company also boasts of a growth-focused financial track record and consistent profitability that is coupled with healthy cash flows and shareholder returns. 
Other meritsConcord Biotech has long-standing relationships with key customers and also has an experienced team of promoters and management that are supported by marquee investors. 

Risks of investment

Here are some of the risks that investors of Concord Biotech Limited IPO should know:

CategoryDetails
Business viability and profitabilityThe revenue concentration is in the hands of limited customers and any reduction in the same will be detrimental to the businessThe business can be adversely affected by factors like slowdown or shutdown in manufacturing or research and development operations, delay or interruption or reduction in the supply of the raw materials or the transportation of raw materials or product,  manufacturing or quality control issues which may damage the company’s reputation and open it for litigation, etc. 
Other concernsThe company faces competition from hospitals, pharmacies, and other healthcare service providers.They are subject to extensive government regulations and statutory compliances. Any delay or failure in obtaining, maintaining, and renewing the same will damage the business prospects. 

What is the Grey Market Premium (GMP) of Concord Biotech Limited IPO?

As of August 2nd, 2023, the grey market premium for the shares of Concord Biotech Limited IPO is Rs. 180 as per market observers. This means the shares are expected to list at a premium of Rs. 180 per share over the listing cap price of Rs. 741.

Should you apply for Concord Biotech Limited IPO?

Concord Biotech Limited belongs to a niche sector that has tremendous growth potential and demand from domestic and international markets. They saw a reduction in their revenues and profits in FY 21-22 but recovered the same in FY 22-23. While the growth potential and initial buzz of the IPO seem good, it is advisable that investors focus on the company’s fundamentals and performance as well as the growth prospects of the business before investing in it.

How to apply for Concord Biotech Limited?

Investors can invest in this IPO through the Fisdom app.

Concord Biotech Limited IPO FAQs

1. What are the core APIs manufactured by Concord Biotech Limited?

The core APIs manufactured by Concord Biotech Limited include fermentation and semi-synthetic-based API products in therapeutic segments such as Immunosuppressants, Anti-bacterial, Oncology, Antifungals & others.

2. What is the EBITDA margin of Concord Biotech Limited for the year ending March 2023?

The EBITDA margin for Concord Biotech Limited for the year ending March 2023 is 40.47% which is higher than its listed peer Divi’s Laboratories Limited which has an EBITDA margin of 30.48%.

3. Where are the manufacturing facilities of Concord Biotech Limited?

Concord Biotech Limited has established three manufacturing facilities in Gujarat, which include API manufacturing units located in Dholka and Limbasi, as well as a formulation manufacturing facility in Valthera.

4. What is the projected CAGR of the API market in India during the period from 2022 to 2026?

During the period from 2022 to 2026, the domestic API market in India is projected to grow at a Compound Annual Growth Rate (CAGR) of 11.1%.

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