IPO screener: Jhunjhunwala-backed Concord Biotech subscribed 0.6 times on Day 1

Posted on by

The ₹1,550.59-crore initial public offering of Concord Biotech that opened for public subscription on Friday was subscribed 0.61 times so far. The Jhunjhunwala-backed company has set the price band as ₹705-741. Investors can bid for a minimum of 20 equity shares and in multiples of 20 equity shares thereafter.The IPO will close on August 8.

Offer details

The public issue with a face value of ₹1 per equity share is entirely an offer for sale of 2.092 crore shares by Helix Investment Holdings Pte Ltd (which is backed by Quadria Capital Fund LP, an Asian private equity fund with a focus on healthcare). The offer also includes a reservation for a subscription by eligible employees. A discount of Rs 70 a share is being offered to Eligible Employees bidding in the Employee Reservation Portion.

The Offer is being made through the Book Building Process, wherein not more than 50 per cent of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15 per cent of the Offer shall be available for allocation to Non-Institutional Investors and not less than 35 per cent of the Offer shall be available for allocation to Retail Individual Bidders.

Also read: 90 start-ups may go for IPO by FY28: Redseer Report

While NII portion was fully subscribed by 1.01 times, retail investors quota was booked by 0.71 times. Employee portion saw a strong response by subscribing 5.73 times while QIB portion by 0.01 times.

Concord Biotech Limited, headquartered in Ahmedabad, is a biotechnology company and is 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.

Anchor investors

The company has garnered ₹464.95 crore from anchor investors ahead of its initial public offering. The company informed the bourses that it allocated 62,74,695 shares at ₹741 per share to anchor investors. 

Also read: Decoding IPOs: Uncovering vital insights in the RHP Document

Foreign Investors and Domestic Institutions who participated in the anchor were The government of Singapore, Abu Dhabi Investment Authority, Government Pension Fund Global, Polar Capital Funds, HSBC Mutual Fund, WF Asian Reconnaissance Fund, Amundi Funds, The Prudential Assurance Company and Pinebridge Global Funds, Nippon Life, UTI Mutual Fund, DSP Mutual Fund, Franklin Mutual Fund, SBI Life Insurance, Motilal Oswal Mutual Fund, Edelweiss Trusteeship, Invesco India, Bandhan Mutual Fund, Aditya Birla Sun Life, Max Life Insurance and Tata AIA Life Insurance.

Rekha Jhunjhunwala-owned RARE Enterprises holds 24.09 per cent stake in Concord Biotech.

Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited and Jefferies India Private Limited are the book-running lead managers and Link Intime India Private Limited is the registrar for the issue.