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Jhunjhunwala-backed Concord Biotech eyes to raise Rs 1,550 cr through IPO

The late Rakesh Jhunjhunwala-backed firm sets price band of Rs 705-Rs 741 a share

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Anjali Singh Mumbai

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Ahmedabad-based Concord Biotech, makers of fermentation-based bulk drugs, is aiming to raise between Rs 1,475.26 crore and Rs 1,550.59 crore from an initial public offering (IPO) set to open on Friday.

Rakesh Jhunjhunwala-backed Concord Biotech Ltd has fixed a price band between Rs 705 and Rs 741 a share. The public issue of face value of Rs 1 per equity share is entirely an offer for sale (OFS), up to 20.92 million shares by Helix Investment Holdings Pte Limited. The offer also includes a reservation for a subscription by eligible employees.

The company has been valued at Rs 7,752 crore. The late Jhunjhunwala and wife Rekha Jhunjhunwala invested in Concord Biotech in 2004.

Helix Investment Holdings Pte Limited holds a 20 per cent stake in the company, while investor Rakesh Jhunjhunwala, who passed away last year, owns a 24.1 per cent shareholding through his asset management firm RARE Enterprises (via RARE Trusts). Promoter and promoter group own 44.1 per cent.

The IPO offers investors the opportunity to bid for a minimum of 20 equity shares and in multiples of 20 shares thereafter. While the company will not receive any net proceeds from the issue as it is a complete OFS, it has allocated 10,000 equity shares for its employees, with a discounted price of Rs 70 per share.

The company has invested more than Rs 500 crore in expanding their facilities over the last three financial years. The company's three manufacturing plants, all located in Gujarat, are being supplemented by a new injectable plant that is nearing completion, set to be commissioned next month and is scheduled for completion by the end of the current calendar year.

Not more than 50 per cent of the net issue shall be offered to the qualified institutional bidders (QIBs), while non-institutional investors will get 15 per cent of the offer. Remaining 35 per cent of the equity shares shall be offered to the retail investors.

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First Published: Jul 31 2023 | 8:15 PM IST

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