MUMBAI, 30^th JULY, 2023 (GPN): Ahmedabad-based biotechnology firm Concord Biotech, backed by late Ace Investor Rakesh Jhunjhunwala’s firm Rare Enterprises and private equity firm Quadria Capital, is gearing up to announce its IPO tomorrow on, Monday 31^st JULY, 2023.

Concord Biotech Ltd has fixed a price band of Rs 705-741 a share for its initial public offerings that will open on August 4^th 2023 for bidding.

The IPO will close on August 8^th and the anchor book opens on August 3^rd The company will finalise the basis of the allotment of IPO shares by August 11, and the equity shares will be credited to the demat accounts of successful investors by August 17^th. It will likely list on exchanges on August 18^th

The company has filed an updated draft red herring prospectus (UDRHP) with SEBI on 27^th JULY, 2023.

The IPO consists of a pure offer-for-sale of up to 20.93 million shares by Helix Investment Holdings Pte Ltd. On the upper band price, the issue any comes at Rs 1,550 crore and the company is valued at Rs 7,752 crore.

Helix Investment Holdings Pte Limited, which is backed by Quadria Capital Fund LP, a healthcare-focused private equity fund in Asia, holds a 20 percent stake in the company. Quadria Capital had invested Rs 475.30 crore in 2016, While big bull Rakesh Jhunjhunwala, who passed away last year, through his asset management firm RARE Enterprises (through RARE Trusts) owns 24.09 percent shareholding.

Rekha Jhunjhunwala and her deceased spouse Rakesh Jhunjhunwala had invested in Concord Biotech in 2004.

Concord Biotech commands a market share of over 20 percent by volume in 2022 across identified fermentation-based API products. The biopharma company manufactures select fermentation-based APIs across immunosuppressants and oncology in terms of market share, based on volume in 2022, supplying to over 70 countries including regulated markets. By March 2023, it had 23 API (active pharmaceutical ingredients) products.

On the financials front, Concord registered healthy earnings for the year ended March FY23 with profit growing 37.2 percent to Rs 240 crore and revenue increasing 20 percent to Rs 853.2 crore compared to the previous year.

EBITDA (earnings before interest, tax, depreciation and amortisation) jumped 27.3 percent to Rs 343.3 crore with a margin expansion of 240 basis points at 40.2 percent during the same period.

Concord Biotech is among the leading manufacturers of fermentation-based biopharmaceutical APIs focused on niche segments, such as immunosuppressant, oncology, anti-fungal and anti-bacterial. It has three manufacturing facilities — Valthera, Dholka, and Limbasi — in Gujarat.

The IPO announcement will be done by Mr Sudhir Vaid, Chairman and Managing Director, Concord Biotech alongwith Mr Ankur Vaid, CEO and Jt. MD, Concord Biotech and Mr Lalit Sethi, CFO, Concord Biotech in the august gathering of bankers and registrar to the offer.

Kotak Mahindra Capital Company, Citigroup Global Markets India, and Jefferies India Private Limited are the merchant bankers for the IPO, while Link Intime India is the registrar of the offer.Ends

About the Company:
Concord Biotech is an Ahmedabad-based biotechnology company and one of the leading global developers and manufacturers of select fermentation-based APIs across immunosuppressants and oncology in terms of market share, based on volume in 2022 (Source: F&S Report). The company supplies to over 70 countries including regulated markets, such as the United States, Europe and Japan, and India and have a market share of over 20% by volume in 2022 across identified fermentation-based API products, including mupirocin, sirolimus, tacrolimus, mycophenolate sodium and cyclosporine. (Source: F&S Report). Concord Biotech have a total of 41 manufacturing blocks and 387 reactors and have presence across 20 states and five union territories in India.

RHP: https://investmentbank.kotak.com/downloads/concord-biotech-limited-RHP.pdf

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