Concord Biotech
Book Building issueMainboard₹1,551 Cr issue
+21.46%
Listing gain over issue price
Issue size
₹1,551 Cr
1 lot at cut-off
₹14,820
Lot size
20shares
Open
04 Aug 2023
Close
08 Aug 2023
Allotment
11 Aug 2023
Listing
18 Aug 2023
Listing performance
Issue price
₹741
Listed at
₹900.05
Listing-day close
₹942.80
Latest price
₹1,229.30
Close on 23 Oct 2026
Listing gain
+21.46%
Return since issue
+65.90%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 04 Aug 2023 – 08 Aug 2023
- Listing date
- 18 Aug 2023
- Face value
- ₹1 per share
- Issue price
- ₹741 per share
- Lot size
- 20 shares
- Issue type
- Book Building issue
- Total issue size
- ₹1,551 Cr
- Market cap at offer price
- ₹7,752 Cr
- Promoter holding
- 44.08% → 44.08% pre-issue → post-issue
- ISIN
- INE338H01029
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Kotak Mahindra Capital Co.Ltd.
- Registered office
- 1482-86, Trasad Road Dholka, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 62,74,695 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 20 shares per lot, in multiples, at ₹741
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 20 | ₹14,820 |
| Retail (max) | 13 | 260 | ₹1,92,660 |
| S-HNI (min) | 14 | 280 | ₹2,07,480 |
| S-HNI (max) | 67 | 1,340 | ₹9,92,940 |
| B-HNI (min) | 68 | 1,360 | ₹10,07,760 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
62,74,695
Anchor portion
₹465 Cr
at ₹741 per share
Valuation and performance
Valuation at offer price
₹741 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 20.79 | — |
| P/E (×) | 35.64 | — |
| Market cap | — | ₹7,752 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 20.00%
- ROCE
- 24.27%
- PAT margin
- 28.14%
- NAV per share
- ₹123.31
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Concord Biotech
Concord Biotech Limited was originally incorporated as 'Servomed Pharmaceuticals Private Limited' on November 23, 1984, and was renamed to 'Concord Biotech Limited' in 2001. The company is an India-based biopharma company and one of the leading global developers and manufacturers of select fermentation-based APIs across immunosuppressants and oncology in terms of market share, based on volume in 2022. As of March 31, 2023, the company had 23 APIs across immunosuppressants, oncology and anti-infectives, and 77 approved products for formulations. The company had over 200 customers in over 70 countries as of March 31, 2023 for its APIs and formulations. The company generates revenue through the sale of APIs and formulations to pharmaceutical companies globally.
Company Analysis
from RHPConcord Biotech Limited is an India-based biopharma company and a leading global developer and manufacturer of fermentation-based active pharmaceutical ingredients (APIs) across immunosuppressants and oncology, with operations spanning API and formulation businesses.
Concord Biotech Limited was originally incorporated as 'Servomed Pharmaceuticals Private Limited' on November 23, 1984, and was renamed to 'Concord Biotech Limited' in 2001. The company is an India-based biopharma company and one of the leading global developers and manufacturers of select fermentation-based APIs across immunosuppressants and oncology in terms of market share, based on volume in 2022. As of March 31, 2023, the company had 23 APIs across immunosuppressants, oncology and anti-infectives, and 77 approved products for formulations. The company had over 200 customers in over 70 countries as of March 31, 2023 for its APIs and formulations. The company generates revenue through the sale of APIs and formulations to pharmaceutical companies globally.
pharmaceutical manufacturingactive pharmaceutical ingredients (APIs)formulationsbiotechnologyfermentation-based drug development
Objects of the Issue
- This is an Offer for Sale where the Selling Shareholder will be entitled to the entire proceeds of the Offer after deducting the Offer expenses and relevant taxes thereon. Our Company will not receive any proceeds from the Offer. The objects of the Offer are to (i) achieve the benefits of listing the Equity Shares on the Stock Exchanges; and (ii) carry out the Offer for Sale of up to 20,925,652 Equity Shares by the Selling Shareholder. p.17
- Achievement of the benefits of listing the Equity Shares on the Stock Exchanges and carrying out the Offer for Sale of Equity Shares by the Selling Shareholder p.90
Issue Structure
- Total Issue
- ₹15,505.21 million*
- Fresh Issue
- Not applicable
- Offer for Sale
- 20,925,652* Equity Shares by Helix Investment Holdings Pte. Limited, aggregating to ₹15,505.21* million
- Price Band
- ₹705 - ₹741 per Equity Share
- Lot Size
- 20 Equity Shares and in multiples of 20 Equity Shares thereafter
- Face Value
- ₹1 per Equity Share
Business Model
Concord Biotech operates in two primary segments: (1) the APIs business, where it develops and manufactures active pharmaceutical ingredients, particularly fermentation-based APIs for immunosuppressants, oncology, and anti-infectives; and (2) the formulations business, where it develops finished pharmaceutical products. The company sells its APIs and formulations to over 200 customers across over 70 countries, operating through its own sales force in India and through distributors in international markets.
Business Segments
Develops and manufactures active pharmaceutical ingredients, particularly fermentation-based APIs for immunosuppressants, oncology, and anti-infectives. The company has 23 APIs across these therapeutic areas.
Develops and manufactures finished pharmaceutical products (formulations) including tablets, capsules, injections, and other drug products. The company has 77 approved products for formulations.
Development and manufacturing of fermentation-based APIs across immunosuppressants, oncology and other therapeutic areas, with 128 Drug Master Files filed across several countries including 20 in the United States, 65 in Europe and 4 in Japan as of June 30, 2023, and 14 Certifications of Suitability to the Monographs of the European Pharmacopoeia as of March 31, 2023.
Manufacture and distribution of pharmaceutical formulations with 77 approved products as of March 31, 2023, including products subject to price controls such as Mofecon 500 mg tablets, Tacrocord 1.0 mg capsules and Gammacord 100ml IV.
Manufactures fermentation-based APIs used for organ transplant rejection prevention and autoimmune disorder treatment. As of March 31, 2023, offered six immunosuppressant APIs including tacrolimus, mycophenolate mofetil, mycophenolate sodium, cyclosporine, sirolimus and pimecrolimus.
Manufactures fermentation-based APIs for anti-bacterial and anti-fungal treatments. As of March 31, 2023, offered five anti-bacterial APIs (mupirocin, mupirocin calcium, vancomycin hydrochloride, teicoplanin, polymyxin B sulfate) and anti-fungal APIs (anidulafungin, micafungin sodium, caspofungin, nystatin).
Manufactures fermentation-based APIs used in cancer treatment. As of March 31, 2023, offered six oncology drug APIs including temsirolimus, everolimus, romidepsin, mitomycin, dactinomycin and midostaurin.
Manufactures and distributes immunosuppressant, nephrology, and anti-infective formulations. Marketed under own brands in India through direct hospital sales, and in United States and emerging markets through distributor arrangements. As of March 31, 2023, offered 27 brands. Generated revenue from formulation products of ₹1,100.65 million (FY2021), ₹1,380.26 million (FY2022), and ₹918.54 million (FY2023).
Provides contract development and manufacturing organization services for APIs and formulations through collaboration with third-party pharmaceutical companies to develop APIs and formulations.
Manufacturing of fermentation-based APIs across immunosuppressants and oncology. The company sources APIs from external suppliers due to highly specialized nature of manufacture and associated costs and efficiency, although it is able to manufacture them in-house. Manufacturing facilities located at Dholka (Unit I) and Limbasi (Unit III).
Manufacturing and marketing of pharmaceutical formulations. The company has a formulations facility at Valthera (Unit II) in Gujarat. It maintains a sales and marketing team of 144 personnel as of March 31, 2023 who interact regularly with doctors and healthcare providers to promote formulations.
Develops and manufactures fermentation-based and semi-synthetic active pharmaceutical ingredients across immunosuppressants, oncology, and anti-infectives. As of March 31, 2023, the company offered 23 API products including mupirocin, sirolimus, tacrolimus, mycophenolate mofetil, mycophenolate sodium, cyclosporine, pimecrolimus, temsirolimus, everolimus, romidepsin, mitomycin, dactinomycin, midostaurin, vancomycin hydrochloride, teicoplanin, anidulafungin, micafungin sodium, and caspofungin.
Develops and manufactures drug products (tablets, capsules, injections) used in therapeutic areas of immunosuppressants, nephrology drugs and anti-infective drugs for critical care. As of March 31, 2023, the company had 77 approved formulation products marketed under 27 brands in India across 20 states and five union territories, and also supplies to countries in Asia, Africa, Latin America, and the United States. The company has obtained four ANDA approvals from USFDA for six formulation products.
Manufacture and sale of active pharmaceutical ingredients
Manufacture and sale of pharmaceutical formulations including injectable formulations
SWOT Analysis
Strengths
- • Leading global position in fermentation-based APIs(p.17)
- • Diversified product portfolio across multiple therapeutic areas(p.17)
- • Strong revenue growth trajectory(p.41)
- • Solid financial performance with healthy profitability(p.34)
- • Multiple regulatory approvals and certifications from international authorities(p.33)
- • In-house manufacturing capability for key starting materials(p.33)
- • Established presence in complex fermentation-based APIs with global leadership in immunosuppressant category(p.101)
- • Scaled manufacturing facilities with consistent regulatory compliance and strong R&D capabilities(p.96)
- • Diversified global customer base with long-standing relationships across 70+ countries(p.101)
- • Strong financial performance with consistent profitability and healthy margins(p.102)
- • Rapid revenue growth with 17.6% CAGR from 2021-2023(p.102)
- • Established presence across complex fermentation value chain with difficult-to-replicate technical expertise(p.147)
- • Global leadership in immunosuppressant APIs with over 20% market share by volume in 2022(p.148)
- • Scaled manufacturing facilities with 1,250 m³ fermentation capacity and consistent regulatory compliance(p.145)
- • Diversified global customer base with over 200 customers in over 70 countries and long-standing relationships(p.146)
- • Strong financial track record with 17.60% CAGR in revenue and 40.47% EBITDA margin(p.151)
- • 128 Drug Master File filings including 20 US, 65 Europe, and 4 Japan filings as of June 2023(p.145)
- • Among few Indian manufacturers with ANDA approvals integrated with in-house fermentation APIs for organ transplant drugs(p.148)
- • Experienced management team backed by marquee investors including Quadria Capital and RARE Enterprises(p.150)
- • Diversified raw material sourcing with supplier diversification strategy(p.162)
- • Established R&D capabilities with DSIR registration across multiple facilities(p.164)
- • Strong IP portfolio with trademark registrations(p.164)
- • Substantial owned asset base including manufacturing facilities(p.165)
- • Experienced and stable workforce with no historical labor disruptions(p.164)
- • Comprehensive environmental management and ESG practices integrated into operations(p.162)
- • Leading market position in fermentation-based APIs(p.265)
- • Significant installed fermentation capacity and manufacturing flexibility(p.267)
- • Strong R&D capabilities with DSIR-approved units(p.267)
- • Diversified customer base across regulated markets(p.267)
- • Backward integration through formulations business(p.267)
- • Long-term customer relationships(p.267)
- • Strong profitability and cash generation(p.268)
- • Multiple regulatory approvals and certifications(p.266)
Weaknesses
- • High dependency on limited number of customers(p.31)
- • Geographic concentration of all manufacturing and R&D operations in Gujarat(p.34)
- • High raw material import dependency on China(p.32)
- • Low capacity utilization at formulation manufacturing facility(p.36)
- • Loss of major distributor impacting formulations revenue(p.34)
- • Significant working capital requirements(p.36)
- • Pending tax and excise duty disputes(p.19)
- • High debt burden relative to assets with total borrowings of ₹312.36 million requiring ongoing compliance with lender covenants(p.48)
- • Heavy reliance on information technology and production systems vulnerable to disruption and data breaches(p.48)
- • Dependence on leased corporate office and warehouse facilities with renewal risk(p.51)
- • Insurance coverage may be insufficient for manufacturing hazards and operational risks(p.49)
- • Promoter control limits minority shareholder influence with 29.4% stake enabling significant decision-making power(p.50)
- • Material contingent liabilities including disputed tax demands of ₹143.10 million(p.51)
- • High concentration of revenue among top 10 customers representing 44.28% of total revenue in FY2023(p.161)
- • Significant dependence on procurement of fermentation-based APIs from third-party suppliers as key starting materials(p.156)
- • Low formulation capacity utilization at Valthera facility at 9.92% as of March 31, 2023(p.160)
- • Reliance on limited number of regulatory certifications across key markets with recent Limbasi facility inspection(p.145)
- • Concentration risk in customer base limiting revenue diversification(p.162)
- • Dependence on raw material imports from limited geographies(p.162)
- • Insurance coverage may be insufficient for major losses(p.163)
- • Reliance on unaudited financial statements of joint venture(p.209)
- • High dependence on top 10 customers(p.267)
- • Significant increase in operating expenses and power costs(p.270)
- • Declining profit margin and EBITDA margin from FY2021(p.268)
- • Formulations business experiencing revenue decline(p.268)
- • New facility (Limbasi) still ramping up operations(p.268)
Opportunities
- • Large and growing oncology API market(p.17)
- • Substantial anti-infectives market opportunity(p.17)
- • Government incentive schemes for pharmaceutical manufacturing(p.39)
- • New manufacturing facility for injectables to expand therapeutic reach(p.41)
- • International expansion potential and geographic diversification(p.17)
- • Growing domestic market with increasing India-focused revenue(p.42)
- • Expand formulation business beyond current 77 approved products globally(p.102)
- • Increase penetration of immunosuppressant and oncology APIs in high-growth emerging markets(p.101)
- • Leverage regulatory infrastructure (128 DMFs, 14 European Pharmacopoeia certifications) to launch new products(p.101)
- • Global fermentation-based API market expected to grow from $11 billion in 2022 to $14 billion by 2026 at 3.6% CAGR(p.145)
- • Immunosuppressant drug market expected to grow at 9.6% CAGR from 2022 to 2026(p.148)
- • Oncology drug market is fastest-growing segment with 14.3% CAGR from 2022 to 2026(p.148)
- • Anti-infective market expected to grow from $32 billion in 2022 to $36 billion by 2026(p.148)
- • Expansion of formulation portfolio through new dosage forms including injectables facility under development(p.145)
- • India's domestic API market expected to grow at 11.1% CAGR from 2022 to 2026(p.126)
- • Approval as recipient of incentives under Government of India's Production Linked Incentive Scheme(p.149)
- • China to India supply shift driven by stringent environmental norms and geopolitical factors(p.108)
- • Expansion of procurement from Indian suppliers to reduce import dependency(p.162)
- • Growing business in Japan joint venture with increasing supply volumes(p.178)
- • Continued patent filing and innovation in domestic and overseas markets(p.164)
- • Expansion of capacity through capital work-in-progress(p.211)
- • Benefit from Gujarat Biotechnology Policy subsidies and incentives(p.171)
- • Growing fermentation-based API market with strong CAGR(p.266)
- • Expansion of API product portfolio(p.268)
- • Utilization of new Limbasi facility capacity(p.268)
- • Growth in priority therapeutic areas (immunology, oncology, anti-infectives)(p.266)
- • Government incentive schemes supporting manufacturing(p.270)
- • Expansion of formulations business in emerging markets(p.268)
- • Increasing regulatory approvals and DMF filings(p.268)
Threats
- • Supply chain disruptions in raw materials from third-party suppliers(p.32)
- • Global trade and geopolitical risks affecting raw material sourcing(p.32)
- • Extensive regulatory requirements and potential approval delays(p.36)
- • Intense pharmaceutical industry competition(p.43)
- • Pricing pressure from customers and consolidation in customer base(p.34)
- • Currency fluctuation risks from significant export exposure(p.36)
- • COVID-19 pandemic and future health emergency risks(p.42)
- • Dependence on third-party distributors with limited control over their operations(p.34)
- • Labor unrest and wage inflation risks(p.48)
- • Natural disasters and fire hazards at manufacturing facilities(p.44)
- • Compulsory licensing by patent authorities could rapidly erode competitive advantages in key products(p.53)
- • Government price controls restricting revenue from regulated formulations (35.65% of India formulation sales)(p.54)
- • Indian economic slowdown, inflation, and exchange rate volatility could adversely impact operations and profitability(p.54)
- • Technological obsolescence requiring substantial capital investments to remain competitive(p.48)
- • Labor-intensive operations exposed to strikes, wage demands, and stringent Indian labor legislation(p.52)
- • Manufacturing facilities face inherent risks from fire, accidents, and hazardous materials(p.49)
- • Geopolitical risks including Russia-Ukraine conflict and global economic uncertainty(p.56)
- • Stringent regulatory requirements and increasing incidence of carcinogenic impurities requiring more testing and compliance burden(p.113)
- • High barriers to entry attracting new competitors to fermentation-based API manufacturing(p.145)
- • Geographical diversification of supply chain creating logistics infrastructure strain and resilience challenges(p.113)
- • Raw material supply and price volatility dependent on weather conditions, harvest and natural disasters(p.125)
- • Risk of contamination high due to use of living organisms in fermentation requiring strict cGMP compliance(p.125)
- • Market concentration with China accounting for over 50% of global small molecule fermentation API supply(p.125)
- • Increasing need for complex technical expertise and specialization creating entry and expansion barriers(p.113)
- • Patent expiry of blockbuster fermentation-based biologic drugs worth $60 billion between 2023-2025 creating pricing pressure(p.124)
- • Regulatory risks from environmental, health and safety compliance requirements(p.162)
- • Supply chain disruption risks from raw material delays or transportation interruptions(p.162)
- • Dependence on limited supplier base for raw materials from foreign countries(p.162)
- • Regulatory price controls on pharmaceutical formulations under DPCO(p.168)
- • Pharmaceutical sector FDI restrictions and conditionalities(p.174)
- • Significant increase in power and fuel costs(p.270)
- • Volatility in raw material prices(p.270)
- • Supply chain disruptions for raw materials(p.270)
- • Withdrawal of export incentive schemes(p.271)
- • Intense competition for qualified employees(p.270)
- • Dependence on regulatory inspections and approvals(p.267)
- • Regulatory uncertainty around government incentive programs(p.270)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sudhir Vaid | Promoter | 28.84% | — |
| Ankur Vaid | Promoter | 0.56% | — |
| Sudhir Vaid (Jointly with Manju Vaid) | Promoter | 28.84% | 28.84% |
| Ankur Vaid (Jointly with Megha Vaid) | Promoter | 0.56% | 0.56% |
| Sudhir Vaid | Promoter | — | — |
| Ankur Vaid | Promoter | — | — |
| Helix Investment Holdings Pte. Limited (backed by Quadria Capital Fund L.P.) | Promoter Group | 20.00% | — |
| RARE Enterprises (through RARE Trusts) | Promoter Group | — | — |
| Sudhir Vaid | Promoter | 28.84% | — |
| Ankur Vaid | Promoter | 0.56% | — |
| Mr. Sudhir Jairam Vaid | Promoter | 28.84% | — |
| Helix Investment Holdings Pte Limited, Singapore | Promoter Group | 20.00% | — |
| Mrs. Manju Sudhir Vaid | Promoter Group | 9.55% | — |
| Nishtha Jhunjhunwal Disc Trust | Promoter Group | 8.03% | — |
| Aryavir Jhunjhunwal Disc Trust | Promoter Group | 8.03% | — |
| Aryaman Jhunjhunwal Disc Trust | Promoter Group | 8.03% | — |
| M/s. Ontario Inc. | Promoter Group | 5.39% | — |
| Mr. Ankur Sudhir Vaid | Promoter | 0.56% | — |
| Helix Investment Holdings Pte. Limited | Selling Shareholder | 20.00% | — |
| Helix Investment Holdings Pte. Limited | Selling Shareholder | — | — |
| Surendra Pranlal Shah | First Director | — | — |
| Madhikant Pranlal Shah | First Director | — | — |
| Indravadan Pranlal Shah | First Director | — | — |
Leadership
Sudhir Vaid · Chairman/Promoter
Ankur Vaid · Promoter
Prakash Sajnani · Company Secretary and Compliance Officer, and Assistant Vice President (Finance)
Lalit Sethi · Chief Financial Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Concord Biotech IPO FAQs
What is the lot size of Concord Biotech IPO?
The minimum lot size of Concord Biotech IPO is 20 shares. One lot costs ₹14,820 at the cut-off price.
When does Concord Biotech IPO open and close?
Concord Biotech IPO opened for subscription on 04 Aug 2023 and closed on 08 Aug 2023.
What is the listing date of Concord Biotech IPO?
Concord Biotech IPO listed on 18 Aug 2023.