IPO screener: Jhunjhunwala-backed Concord Biotech to hit Street today

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The Rs 1,550.59-crore initial public offering of Concord Biotech opens for public subscription today (August 4). The Jhunjhunwala-backed company has set the price band at Rs 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.

Discount to employees

The public issue with a face value of Re 1 per equity share is entirely an offer-for-sale of 20.92 million equity 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 includes 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 will be available for allocation to qualified institutional buyers, not less than 15 per cent for non-institutional investors, and not less than 35 per cent of the offer will be available for allocation to retail individual bidders.

About Concord

Concord Biotech Ltd, headquartered in Ahmedabad, is one of the leading global developers and manufacturers of select fermentation-based APIs across immunosuppressants and oncology, based on volume in 2022.

The company has garnered Rs 464.95 crore from anchor investors ahead of its initial public offering. The company has allocated 62,74,695 shares at Rs 741 per share to anchor investors. 

Anchor investors

Foreign Investors and domestic Institutions who participated in the anchor include 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 Ltd, Citigroup Global Markets India Pvt Ltd and Jefferies India Pvt Ltd are the book-running lead managers and Link Intime India Pvt Ltd the registrar to the issue.