Stellar Listing: Concord Biotech debuts at a premium of 21% at Rs 900 per share

Concord Biotech Limited, a prominent Active Pharmaceutical Ingredients (API) manufacturer through fermentation & semi-synthetic process and finished formulations, is listed with a premium of 21.45% at Rs 900.05 per share on BSE. On the NSE, the stock debuted at Rs 900.05, indicating an impressive increase of 21.46% compared to its initial public offering price of Rs 741 per share. 

While writing this article, Concord Biotech stock is trading at Rs 932 on the BSE. Its intraday highs and lows are Rs 987.05 and Rs 900, respectively. The current market capitalisation of the company is Rs 9781.62 Crore. 

Company profile

Established in 1984, Concord Biotech is an Indian biopharmaceutical company driven by research and development. Globally recognized, the company is a prominent player in the development and manufacturing of fermentation-based Active Pharmaceutical Ingredients (APIs) within the realms of immunosuppressants and oncology. 

It caters to more than 70 countries, including key markets like the USA, India, Europe, and Japan.  

The core of the company’s operations lies in the production of Active Pharmaceutical Ingredients (APIs), achieved through fermentation and semi-synthetic processes, as well as the creation of finished formulations. 

IPO Journey

Let’s recapitulate the subscription history of the company, on the final day of the IPO window June 30, 2023, the IPO witnessed an exceptional subscription rate of 24.87 times. The public issue received an overwhelming response, with the retail category being subscribed 3.78 times, the QIB category achieving a remarkable subscription rate of 67.67 times, and the NII category reaching a subscription rate of 16.99 times. 

The company had attracted Rs 464.95 crore from various anchor investors. The company has allocated 62.75 lakh equity shares at Rs 741 per share to anchor investors. 

The price range for the IPO was set between Rs 705 and Rs 741, with a face value of Rs 1 per share and a lot size of 20 shares. The total size of the company’s IPO was Rs 1551 Crore. The final share issue price of the company was fixed at Rs 741. It has given a return of 21.4% on the listing day itself. 

Following is the financial performance of the company: 

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Considering the current market conditions, investors who applied for the listing gains only may contemplate booking profits. Alternatively, they could set a stop loss of Rs 895 per share, as the shares have not traded below Rs 900 each. 

On the other hand, investors with a higher risk appetite may choose to hold the shares for the medium to long term, which could prove beneficial, given the current boom in pharma stocks. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.