Mumbai: Concord Biotech, a homegrown research and development-driven biopharma company, is all set to finalize the basis of allotment of its shares on Friday, August 11, 2023. The company’s highly anticipated initial public offering (IPO), which raised Rs 1,551 crore, received an overwhelming response from investors during the three-day bidding process held between August 4-8.
Concord Biotech’s IPO was offered in the price range of Rs 705 to Rs 741 per share and witnessed a robust overall subscription of 24.87 times. The IPO’s demand was particularly strong among qualified institutional bidders, with that portion being subscribed 67.67 times. Non-institutional investors showed keen interest as well, with the non-institutional investors’ category being subscribed 16.99 times. The retail investors’ quota was oversubscribed 3.78 times, and the employee portion garnered 24.48 times bids.
The grey market premium (GMP) of Concord Biotech has demonstrated stability with a slight improvement. The latest reports indicate that the GMP for Concord Biotech is around Rs 155-160, compared to Rs 130 on August 8, the last day of bidding. This suggests a positive outlook for the stock’s listing, with a potential upside of around 20 percent for investors who receive the allotment.
Founded in 1984, Concord Biotech has emerged as a key player in the biopharma sector, driven by research and development. The company is a prominent global developer and manufacturer of fermentation-based active pharmaceutical ingredients (APIs). Its products span immunosuppressants and oncology segments, and its presence extends across more than 70 countries, including major markets like India, Japan, the United States, and Europe.
Investors and Analysts’ Perspectives
The Concord Biotech IPO has garnered positive attention from many brokerage firms. Analysts have cited the company’s robust business model, global presence, and in-line valuations as key factors driving their positive outlook. A majority of analysts have recommended subscribing to the IPO, highlighting Concord Biotech’s potential for growth in the biopharma sector.
However, there are also analysts who have advised caution. Some have suggested avoiding the IPO due to concerns about limited upside potential, the complete offer-for-sale (OFS) nature of the issue, and potential dependency on a few large clients.
Checking Allotment Status
Investors who participated in the IPO can check their allotment status through various channels. One option is to visit the Bombay Stock Exchange (BSE) website:
The registrar plays a crucial role in processing IPO applications and managing the allotment process. It ensures timely updates regarding share credit, refunds, and investor queries after the IPO concludes, in accordance with SEBI regulations.
As Concord Biotech’s IPO journey progresses, investors and market observers are eagerly awaiting the final allotment results and anticipating the stock’s listing on August 18. The company’s strong foundation, growth potential, and market outlook continue to shape investor sentiment as they await the next chapter in Concord Biotech’s trajectory.