Concord Biotech limited is an Indian biopharmaceutical business, will hold a significant market position as one of the top global innovators and producers of specific fermentation-based APIs for immunosuppressants and cancer based on volume in 2021(Source: F&S Report). Concord Biotech IPO will hit the stock market in December 2022.
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About Concord Biotech
Over 70 nations, including regulated markets like the United States, Europe, Japan, and India, are served by Concord Biotech Limited. For the identified fermentation based API products, such as dactinomycin, sirolimus, tacrolimus, mycophenolate sodium, and cyclosporine, they held a market share of more than 20% by volume in 2021. (F&S Report as Source)
They had a total installed fermentation capacity of 1,250 m3 as of March31, 2022. They started their formulation business in India in 2016 and have since moved to other developing nations like Nepal, Mexico, Indonesia, Thailand, Ecuador, Kenya, Singapore, and Paraguay.
They are one of the few businesses in the world to have built and scaled up fermentation-based API manufacturing capabilities effectively and sustainably (Source: F&S Report).
Business
Working with microbial strains & cultures, managing several process parameters, and carrying out numerous purification processes make fermentation a difficult operation.
Relatively big variations in the results can result from little changes to the method. Significant hurdles to entry in the fermentation-based API field are a result of complex technological capabilities, challenges with scaling up operations, and the high financial commitment needed.
In 2021, the market for fermentation-based short molecule APIs was estimated to be around US$11 billion (817 billion). The market is anticipated to grow at a CAGR of 3.6% from 2021 to 2026, reaching roughly US$13 billion (966 billion) in 2026.
They are well-positioned to profit from the industry growth tailwinds because they are well-established in these therapeutic areas.
Solutions
Concord Biotech limited recently made large investments in capacity growth. They are currently ramping up their API output to service additional customers thanks to their enhanced capacity.
They had 22 API products as of March 31, 2022. As of the date of this Draft Red Herring Prospectus, they had submitted more than 120 Drug Master Files for their APIs across a number of nations, including 20, 63, and four in the US, Europe, and Japan, respectively.
As of March 31, 2022, Concord Biotech also had Certification of Suitability to the European Pharmacopoeia Monographs for 13 APIs.
Concord Biotech entered the formulations market in 2016 in order to profit from the advantages of backward integration that their involvement in APIs offers.
Concord Biotech IPO
Concord Biotech Limited, headquartered in Ahmedabad has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 20,925,652 Equity Shares on 12 August 2022.
The offer doesn’t includes a fresh issue and there is offer for sale (OFS) of 20,925,652 Equity Shares by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement in this issue.
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- Initial Public Offering
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-22 | 31-Mar-21 | 31-Mar-20 | |||
| Total Assets | 1,312.80 | 1,182.55 | 940.52 | ||
| Total Revenue | 736.35 | 630.75 | 543.59 | ||
| Loss After Tax | 174.93 | 234.89 | 169.11 | ||
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | 16.17 | 16.17 | 3 |
| Financial Year 2021 | 22.45 | 22.45 | 2 |
| Financial Year 2022 | 16.72 | 16.72 | 1 |
| Weighted Average | 18.54 | 18.54 | |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
- To conduct business as importers, exporters, wholesalers, retailers, and distributors of pharmaceutical, baby food, cosmetic, and associated items as well as medications, medicines, and pharmaceutic products.
Basis of the offer
Concord Biotech limited feel that the following qualitative factors & business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the offer price:
- Long-standing presence throughout the intricate fermentation value chain.
- Global leadership in sophisticated fermentation-based APIs used in immunosuppressants and a variety of medicinal fields.
- Scaled manufacturing facilities backed by excellent R&D skills and a track record of regulatory compliance.
- Worldwide consumer base that is diverse and has enduring connections with important clients.
- Seasoned promoters and a management group supported by prestigious investors.
- Financial history of profitable growth and consistency, with good cash flow and high shareholder returns.
Concord Biotech Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 2 | Divi’s Laboratories Limited | 35.31 |
| 2 | 1 | Suven Pharmaceuticals Limited | 26.95 |
| 3 | 2 | Laurus Labs Limited | 35.90 |
| 4 | 1 | Shilpa Medicare Limited | 56.44 |
- All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2021, which can be found on the Stock Exchanges’ websites.
- The P/E ratio is calculated by dividing the closing market price of equity shares on the NSE on August 12, 2022 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2021.
Concord Biotech IPO Details
| IPO Opening Date | December 2022 |
| IPO Closing Date | December 2022 |
| Issue Type | Book Building |
| Face Value | 1 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Amount | – |
| Listing At | BSE, NSE |
| Issue Size | 20,925,652 Equity Shares |
| Fresh Issue | 0 |
| Offer for Sale | 20,925,652 Equity Shares |
Concord Biotech IPO Date
Concord Biotech Limited IPO opening date is December 2022, and the closing date is December 2022. The Concord Biotech issue may list in December 2022.
| IPO Opening Date | December 2022 |
| IPO Closing Date | December 2022 |
| Basis of Allotment Date | December 2022 |
| Initiation of Refunds | December 2022 |
| Credit of Shares to Demat Account | December 2022 |
| IPO Listing Date | December 2022 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly equivalent
|
| Non Institutional Investor | 15 |
Roughly equivalent
|
| Retail | 35 | Minimum 1 lot based on availability |
Concord Biotech India Limited IPO Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Concord Biotech IPO.
Concord Biotech IPO GMP
Concord Biotech Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:
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Check Out the GMP of all Other IPOs
Concord Biotech Limited IPO Review
Concord Biotech Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Concord Biotech IPO is good or bad.
Concord Biotech Limited IPO Risk
- Any manufacturing or quality control problems could hurt their reputation, put them in danger of regulatory action, expose them to lawsuits or other liabilities, & have a negative impact on their operations, financial condition, & business.
- All of their production & R&D operations are based in Gujarat, India, thus a slowdown or shutdown there could have a negative impact on their company.
- A sizable amount of their business is reliant on a small group of important clients.
- Their firm may suffer if they are unable to secure trademarks & patents for their goods, protect such sensitive information, or unintentionally violate the patents of others.
- They are currently eligible for some incentive programmes. End to such programmes could have an impact on their operational success.
Other Threats
- Their Company is embroiled in ongoing legal disputes.
- Their firm could suffer if they are unable to implement their growth strategies, domestic and international expansion goals, and business plans successfully.
- They run the risk of having negative effects on their business, financial state, and operational outcomes if they don’t maintain and expand the number of their arrangements for the marketing and distribution of their goods.
- Due to the complicated management, legal, tax, and economic risks associated with their overseas activities, their company may suffer.
- Any pandemic or major public health event, including COVID-19, could have a negative effect on their business.
- Their business may suffer from non-compliance with & changes to environmental, health & safety, and labour laws and other related regulations.
Concord Biotech Limited IPO Brokerage views
Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Concord Biotech IPO:
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Concord Biotech Limited IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| December 2022 | 1 | |||||
| December 2022 | 2 | |||||
| December 2022 | 3 |
Concord Biotech Limited Management
Concord biotech limited have a skilled and knowledgeable management group that is led by the Promoter. Mr. Sudhir Vaid, one of their promoters and the chairman and managing director of their board, has prior experience working with M/s. For businesses including Plus Chemicals S.A., Lek Pharmaceuticals & Chemicals Co., and Biocon India Limited, Sudman Consultants served as a consultant.
He has been instrumental in expanding their manufacturing capacity, enhancing their technological capabilities, and growing our R&D division.
One of its Promoters, Mr. Ankur Vaid, also serves as the company’s Chief Executive Officer and Joint Managing Director.
He has more than 15 years of experience in the pharmaceutical sector. He has contributed to the growth of their company’s research and development section.
Concord Biotech Limited‘ Promoters
- Sudhir Vaid
- Ankur Vaid
Principal Shareholder’s Holding
| Pre Issue Share Holding | 29.40% |
| Post Issue Share Holding |
Concord Biotech Limited Prospectus
Contact Details
Concord Biotech Limited
1482-86, Trasad Road
Dholka, Ahmedabad –
382225, Gujarat, India
Tel: +91 217 2606 006
E-mail: [email protected]
Website: www.concordbiotech.com
Registrar
Link Intime India Private Limited
C-101, 1st Floor, 247 Park,
L.B.S. Marg, Vikhroli (West)
Mumbai 400 083
Maharashtra, India
Tel: + 91 22 4918 6200
E-mail: [email protected]
Website: www.linkintime.co.in
Lead Manager(s)
- Kotak Mahindra Capital Company Limited
- Citigroup Global Markets India Private Limited
- Jefferies India Private Limited
We hope we are able to answer all your questions about Concord Biotech IPO. If you don’t have a Demat account, open it now with Zerodha best trading app of India.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
Profit must do not engage in grey market trading or facilitate the purchase or sale of IPO forms. We don’t endorse such activities at all. We are sticky against such activities & never advise anyone to trade in grey market at all.
FAQ
Concord Biotech Limited IPO Opening Date?
Concord Biotech Limited IPO will open in December 2022.
Concord Biotech Limited IPO Listing Date?
Concord Biotech Limited IPO will list in December 2022.
Concord Biotech IPO GMP Today?
Concord Biotech IPO Grey Market Premium is INR 0 .
Concord Biotech Limited IPO Allotment Date?
Concord Biotech Limited IPO basis of allotment will be in December 2022.
Lot size for Concord Biotech Limited IPO?
Lot size for Concord Biotech Limited IPO is 0.
