Concord Biotech IPO: Concord Biotech IPO to open for public subscription on Friday, 4 August, and will close on Tuesday, 8 August. The bidding for anchor investors concluded on Thursday, wherein the company collected Rs 465 crore. The price band for its public issue at Rs 705-741 per equity share of face value Rs 10 each. At the upper end of the price band, the company’s promoters and shareholders seek to raise Rs 1,551 crore from the IPO. Ahead of the public issue, Concord Biotech shares’ GMP rose to Rs 185 per equity share, 25% over the upper end of the share price on offer.
The issue is an Offer-For-Sale (OFS) of 2.09 crore equity shares or a 20% stake in the company. The company intends to use the net proceeds from the IPO to bolster its capital base, catering to its future capital requirements resulting from business and asset growth. For potential investors, the bidding starts at a minimum of 20 equity shares, with subsequent bids in multiples of 20 equity shares.
Concord Biotech is an India-based R&D-driven biopharma company. The company is ranked among 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. Concord Biotech supplies their products to over 70 countries including the USA, India, Europe, and Japan.
Should you apply for the Concord Biotech IPO?
Motilal Oswal Financial Services: Subscribe
“We like Concord Biotech given its complex product portfolio, presence in niche space, strong client relationship and high entry barriers. The issue is valued at 32x P/E in line with peer group’s avg: ~32x. We believe CBL could benefit from the industry tailwinds given its PLI approval in place. Hence we recommend Subscribe.”
Choice Broking: Subscribe
“At the higher price band, CBL is demanding a P/E multiple of 32.3x (to its FY23 earning), which is at discount to the peer average. Growth in the global market of fermentation-based APIs is expected to be driven by immunology, oncology and anti-infective therapeutic areas. CBL is focusing on these therapeutic areas with its wide range of niche & complex APIs. Moreover, considering its manufacturing capabilities and geographic presence CBL well placed to benefit from the expansion in the market. Thus, we assign a “SUBSCRIBE” rating for the issue.”
Reliance Securities: Subscribe
“On FY23 financials, the IPO is valued at 32.3x P/E, 22.5x EV/EBITDA and 9.1x EV/Sales, on the upper price band. Concord has an established presence in the therapeutic areas and are well-poised to benefit from the industry growth tailwinds. The immunosuppressant API portfolio is expected to remain one of the key contributors to the API business in the near future. Moreover, the R&D team is working on developing new formulations for which they expect to apply for ANDA approvals from the USFDA. In view of strong global footprint, diversified products portfolio, robust in-house R&D capabilities and experienced management team, we recommend a SUBSCRIBE to the issue.”
(The recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)