Concord Biotech was commanding a GMP of Rs 122, indicating that the shares of the company will get listed at Rs 863, marking a 16.5 per cent premium over the issue price of Rs 741, according to topbrokers
Concord Biotech shares are set to debut on stock exchanges on Friday, August 18. The Rekha Jhunjhunwala-backed firm’s initial public offering (IPO) received strong interest from the market, as the public issue was subscribed by 24.87 times in total during the IPO subscription period of 4 August to 8 August.
The IPO allotment was finalised on 11 August and the shares will be credited to eligible investors’ demat accounts today, August 17.
Grey Market Premium (GMP)
As per topbrokers.com, the shares were commanding a GMP of Rs 122, indicating that the shares of the company will get listed at Rs 863, marking a 16.5 per cent premium over the issue price of Rs 741.
Concord Biotech manufactures Active Pharmaceutical Ingredients (API) through fermentation and semi-synthetic processes and finished formulations. The company aims to raise Rs 1,551 crore through an offer-for-sale (OFS) issue.
Subscription Status
The IPO’s retail investors’ portion was booked 3.78 times, while the Non-Institutional Investors (NII) portion was subscribed 16.99 times. The quota booked for Qualified Institutional Investors (QII) was subscribed 67.67 times.
The biotech firm had reserved 10,000 equity shares for its employees in the IPO and is offering them shares at a discount of Rs 70 per share on the final offer price. The allotted quota was booked 24.48 times.
Price Band
The price band for Concord Biotech's IPO was fixed at Rs 705 to Rs 741 per share. The issue was open for subscription from 4 August to 8 August. The IPO worth Rs 1,551 crore was entirely an offer for sale (OFS) of 2.09 crore shares by Helix Investment Holdings, a subsidiary of Quadria Capital Fund LP.
Kotak Mahindra Capital, Citigroup Global, and Jefferies India are the book running lead manager for the issue. Link Intime India Pvt Ltd is the registrar for the IPO.
"Concord Biotech is a leading API company with a proven track record. But its international operations expose it to various complex risks. Additionally, the industry has been facing margin pressure recently," said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd.
"It is also worth noting that this IPO was purely an OFS. All these factors and current market sentiment somewhere made an impact on its subscription rate as well, where it got subscribed to only 3.78 times in the retail category, but it received a great response from QIBs with 67.67 times subscription. Thus, we can expect moderate listing gains from this IPO, and investors are advised to consider booking profits post-listing," she added.