Concord Biotech, a leading biotechnology firm based in Ahmedabad, is preparing to launch its initial public offering (IPO) in early August. The company is backed by Rare Enterprises, the firm of the late veteran investor Rakesh Jhunjhunwala, and healthcare-focused Asian private equity firm Quadria Capital.
The updated draft red herring prospectus (UDRHP) was filed with the Securities and Exchange Board of India (SEBI) a few days back. As of now, the Concord Biotech IPO is expected to be launched in the first or second week of the following month. The company is aiming for a valuation between $950 million and $1 billion.
The IPO is anticipated to be an entirely offer for sale (OFS), where existing shareholders will sell their shares. The size of the IPO is expected to be around Rs 1,500 crore to Rs 1,600 crore.
As mentioned, the IPO is a pure offer-for-sale (OFS) of up to 20.93 million shares, representing the entire 20 percent stake held by Helix Investment Holdings Pte Ltd. Helix Investment Holdings Pte Ltd is backed by Quadria Capital Fund LP, a healthcare-focused private equity fund in Asia.
According to the draft papers, Quadria Capital had invested Rs 475.30 crore in 2016 to acquire a 20 percent stake in Concord Biotech.
Concord Biotech is positioned as one of the leading global developers and manufacturers of select fermentation-based APIs (Active Pharmaceutical Ingredients) in terms of market share based on volume, specifically in the immunosuppressants and oncology segments in the year 2021. The company’s draft papers indicate that it offers a wide range of products:
APIs: Concord Biotech has 22 APIs across various therapeutic areas, including immunosuppressants, oncology, and anti-infectives.
Formulations: In addition to APIs, the company also offers 43 formulations across different therapeutic areas. These include immunosuppressants, nephrology drugs, anti-infectives for critical care, and other therapeutic areas.
As of March 31, 2022, Concord Biotech had a significant global presence, catering to over 200 customers in more than 70 countries for both APIs and formulations.
The company’s promoters are Sudhir Vaid and Ankur Vaid, who have played a crucial role in the company’s growth and development.
