Will Concord Biotech’s IPO Make for a Strong Listing Pop? Here’s what the gray market premium proposes

Concord Biotech stock should continue to add to the list of positive motherboard IPO listings. The company, which is set to go public on Friday, is likely to post a mild start on its debut, judging by signals from the gray market premium for the listed company. The company was last reported to have fetched a premium of Rs. 120-125 per share, about 17 percent more than the issue price of Rs. 741 per share. Despite a slight improvement this week, the gray market premium remains significantly corrected from its peak of 185-190 rupees per share last week. Based on current signals, Concord Biotech is expected to trade at a premium of around Rs. 122 per share. This would mean the shares could be listed at around Rs 863 per share. Concord Biotech is a leading API company with a proven track record. But its international operations expose it to various complex risks, said Anubhuti Mishra, equity research analyst at Swastika Investmart. “The industry has been under pressure on margins lately. It’s also worth noting that this IPO was pure OFS. All of these factors and the current market sentiment also impacted the subscription rate. We can expect modest listing gains from this IPO, and investors are advised to consider post-listing gains post-listing,” he said. Concord Biotech’s primary offering of Rs.1,551 crore had received a strong response from investors during the three-day bidding process that began August 4-8. The Concord Biotech IPO was sold in the range of Rs.705-741 per unit and received a total of 24.87 subscriptions. The qualifying institutional bidder share was booked 67.67 times, while the non-institutional investor category was subscribed 16.99 times. The allotment reserved for retail investors was subscribed 3.78x, while the employee portion generated 24.48x bids. Founded in 1984, Concord Biotech is a domestic research and development (R&D) focused biopharmaceutical company. The company is one of the world’s leading developers and manufacturers of selected fermentative APIs for immunosuppressants and oncology and is represented in more than 70 countries, including India, Japan, the USA and Europe.

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