Concord Biotech IPO: What GMP Signals as Focus Shifts to Allocations; Check out the key details here

Concord Biotech IPO: The initial public offering (IPO) of Concord Biotech, backed by Rekha Jhunjhunwala, attracted a lot of interest from investors. The public offering was subscribed a total of 24.87 times from August 4th to 8th.

Concord Biotech IPO: The initial public offering (IPO) of Concord Biotech, backed by Rekha Jhunjhunwala, attracted a lot of interest from investors. The public offering was subscribed a total of 24.87 times from August 4th to 8th.

The strong subscription status of Concord Biotech’s IPO can be seen in that the issue received bids for 36.42 crore shares versus 1.46 crore shares on offer.

The strong subscription status of Concord Biotech’s IPO can be seen in that the issue received bids for 36.42 crore shares versus 1.46 crore shares on offer.

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Closing of Concord Biotech’s IPO allotment is expected to occur on August 11, while the refund will be initiated on August 14. The shares will be credited to Demat accounts of eligible investors on August 17th.

The Concord Biotech share listing is expected to take place on August 18th on the BSE and NSE.

With the IPO subscription period now closed, investors are now focusing on Concord Biotech’s IPO-GMP (Grey Market Premium).

Concord Biotech IPO GMP today

Concord Biotech IPO GMP was today ₹159, according to topsharebrokers.com. According to market watchers, shares of Concord Biotech are trading at a premium of ₹159 on the gray market today, ie ₹6 higher than the GMP of ₹153 on Tuesday.

Market observers said that Concord Biotech’s IPO today is GMP ₹159, which means the gray market expects Concord Biotech’s listing price to be around 159 ₹900 ( ₹741+ ₹159), which is roughly 22% above Concord Biotech’s specified IPO price range ₹705 to ₹741 per share.

Concord Biotech IPO subscription status

As previously mentioned, Concord Biotech’s IPO had a total of 24.87 subscriptions as of the close of the final day of the bidding process, August 8th.

The retail category of the Concord Biotech IPO booked 3.78 times, while the non-institutional investors (NII) category booked 16.99 times. The Qualifying Institutional Investor Quote was posted 67.67 times.

The employees bid 24.48 times the allotted quota. The company reserved 10,000 shares for its employees for the IPO and is offering them shares at a discount of ₹70 per share at the final offer price.

Valuation of Concord Biotech’s IPO

Brokerage firm Motilal Oswal Financial Services said in a research report that it liked Concord Biotech because of its complex product portfolio, presence in niche areas, strong customer relationships and high barriers to entry.

“The issue is priced at 32x P/E, which is in line with the peer group average of around 32x. “We believe Concord Biotech could benefit from industry tailwinds once PLI approval is obtained,” the brokerage firm said.

Therefore, Motilal had recommended Oswal to subscribe to Concord Biotech’s IPO

Regarding valuations, SBI Securities said Concord Biotech’s IPO appeared fairly valued compared to its close peers across various valuation parameters. It had recommended investors to subscribe to Concord Biotech’s IPO for a long-term investment perspective.

Details on Concord Biotech’s IPO

The price range for Concord Biotech’s IPO was at ₹705 to ₹741 per share. The company’s goal is to increase ₹1,551 crore for the public offering which is entirely an offering to sell (OFS) of 2.09 crore shares by Helix Investment Holdings, part of Quadria Capital Fund LP.

The underwriters for the offering are Kotak Mahindra Capital, Citigroup Global and Jefferies India. Link Intime India Private Ltd is the registrar for the Concord Biotech IPO.

Disclaimer: The views and recommendations expressed above are provided by individual analysts or brokerage firms and not by Mint. We recommend investors to consult certified experts before making an investment decision.

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