The Concord Biotech IPO has witnessed remarkable success as retail subscriptions reach 1.47 times on the second day of bidding, August 7. Investors have wholeheartedly embraced the IPO, with a total of 1.91 crore equity shares bid against the offering size of 1.46 crore shares, resulting in a subscription rate of 1.31 times.
The response from both high net worth individuals (HNIs) and retail investors has been particularly enthusiastic, with HNIs subscribing 2.63 times and retail investors 1.47 times.
The employees of Concord Biotech have shown significant interest, bidding a staggering 11.05 times the allotted quota. On the other hand, the reserved portion for qualified institutional buyers was booked at 1 percent.
Concord Biotech has thoughtfully set aside 10,000 equity shares for its employees in the IPO, offering them at a discount of Rs 70 per share from the final offer price. Additionally, half of the offer size is reserved for qualified institutional buyers, 15 percent for high net worth individuals, and the remaining 35 percent for retail investors.
Having achieved a 58 percent subscription rate on its debut day, the IPO is set to close on August 8.
The biotechnology firm backed by the esteemed investor Rakesh Jhunjhunwala’s RARE Trusts aims to raise Rs 1,551 crore through its maiden public issue of 2.09 crore shares, constituting only an offer for sale by Helix Investment Holdings, a part of Quadria Capital Fund LP. Consequently, Helix will be making its exit from the company through this offer for sale.
The price band for the IPO is set at Rs 705-741 per share.
Of the total funds being raised, Concord Biotech has already secured Rs 465 crore through an anchor book at the upper price band on August 3. Notably, top global investors such as Abu Dhabi Investment Authority, Amundi Funds, HSBC Mutual Fund, WF Asian Reconnaissance Fund, SBI Life Insurance, Motilal Oswal Mutual Fund, Aditya Birla Sun Life, Government of Singapore, and Pinebridge Global Funds participated in the anchor book.
Concord Biotech boasts three manufacturing facilities and two DSIR-approved R&D units in Gujarat, specializing in the production of bio-pharmaceutical APIs through fermentation and semi-synthetic processes. These APIs cover a range of therapeutic areas, including immunosuppressants, oncology, and anti-infectives, along with formulations. As of March 2023, the company had an impressive portfolio of 23 API products.
About Concord Biotech:
Concord Biotech Limited, based in Ahmedabad, India, is a prominent biotechnology company. Established in the year 2000 by Sudhir Vaid, the company specializes in the production of fermentation-based biopharmaceutical active pharmaceutical ingredients that are distributed globally.
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