Concord Biotech IPO fully subscribed on Day 2. Retail portion booked 2.26 times

After a muted response on Day 1, the initial public offer (IPO) of Concord Biotech sailed through on the second day of bidding. The issue, which opened on Friday, was subscribed 2.72 times on Day 2.

The retail portion was subscribed 2.26 times and the non-institutional investors (NII) category was subscribed the most at 5.22 times. Meanwhile, the category for qualified institutional buyers (QIB) was booked 1.61 times.

The total number of shares available for subscription stood at 14,650,957, and the share bids received around this time stood at 17,847,340, according to information available on the BSE.


The three-day issue closes on Tuesday, August 8.

Ahead of the IPO, the company raised Rs 465 crore in the anchor round, which saw participation from marquee foreign and domestic institutional investors, including the government of Singapore, Abu
Dhabi Investment Authority, Government Pension Fund Global, UTI Mutual Fund, DSP Mutual Fund, SBI Life among others.

Concord, backed by Quadria Capital Fund and Rakesh Jhunjhunwala's Rare Enterprises, is one of the leading global manufacturers of select fermentation-based APIs (F-APIs) across immunosuppressants and oncology with a market share of over 20% by volume in 2022.

The IPO is completely an offer for sale of 2.09 crore equity shares, aggregating up to Rs 1,551 crore. There is no fresh equity issue in the IPO.

Analysts advised investors to subscribe to the issue given its complex product portfolio, presence in niche space, strong client relationship, and high entry barriers.

The company is present across the fermentation value chain and supplies to over 70 countries, including regulated markets, such as US, Europe and Japan, and India.

As of FY23, the company had 23 APIs (89% of revenue), which it aims to increase further, especially in anti-infective/oncology segments.

The company has fixed the price band at Rs 705-741 per share for its public offer. Investors can bid for a minimum of 20 shares and in multiples thereafter.

About 50% of the offer is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NII), and the rest 35% for retail investors.

Kotak Mahindra Capital, Jefferies India, and Citigroup are the book-running lead managers, and Link Intime India is the registrar for the IPO.

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