Concord Biotech files a DRHP for an IPO with backing from Rare Enterprises and Quadria Capital

16 Aug 2022 , 04:06 PM

In order to raise money through an Initial Public Offering (IPO), Concord Biotech Limited, one of the top global developers and producers of specific fermentation-based APIs across immunosuppressants and oncology in terms of market share in 2021, has filed its Draft Red Herring Prospectus (DRHP) with the markets regulator, Securities and Exchange Board of India (SEBI).

The offering, which has a face value of Re1 per equity share, is a full offer for sale (OFS) by Helix Investment Holdings Pte. Limited, totaling 20,925,652 equity shares. The offer also permits qualified employees to reserve a subscription.

The offer is being made through the book building process, in which not less than 15% of the offer must be made available to non-institutional bidders, not less than 35% of the offer must be made available to retail individual bidders, and not more than 50% of the offer must be allocated to qualified institutional buyers.

According to the F&S report’s DRHP, Concord Biotech will hold a market share of over 20% by volume in 2021 for the identified fermentation-based API products dactinomycin, sirolimus, tacrolimus, mycophenolate sodium, and cyclosporine, among others. It provides goods to more than 70 nations, including regulated markets including the US, Europe, Japan, and India.

The DRHP adds that fermentation is a difficult process since it calls for managing several process parameters, working with microbial strains and cultures, and carrying out various purification procedures.
 
It has a portfolio of 56 brands and 65 products as of March 31, 2022, comprising 22 APIs and 43 formulations. They also supplied 80 out-licensed formulations under their own trademarks in India. It has submitted over 120 DMFs in a number of nations.
 
One of the few biopharma companies in the world that have effectively and sustainably created and expanded its fermentation-based API production capabilities is the Ahmedabad-based business. There are three production locations with a combined installed fermentation capacity of 1,250 m3 in the Gujarati state of Valthera, Dholka, and Limbasi.