RARE Trusts-backed Concord Biotech debut at 21% premium on D-Street

18 Aug 2023 , 09:55 AM

Concord Biotech, which is backed by late Rakesh Jhunjhunwala’s RARE Trusts has made debut on the bourses. The shares of Concord Biotech listed at Rs 900.05 on NSE and BSE, 21.46% higher the issue price of Rs 741. 

During the period of August 4th to 8th, the inaugural public offering of the pharmaceutical firm based in Ahmedabad, solely consisting of an offer for sale (OFS) segment, garnered a subscription rate of 24.87 times. Notably, qualified institutional buyers (QIBs) exhibited strong interest by subscribing 67.67 times the allocated quota, while high net worth individuals (HNIs) subscribed 16.99 times. Retail investors and employees subscribed to portions at rates of 3.78 times and 24.48 times, respectively.

The biotech pharmaceutical company has strategically positioned itself across the intricate fermentation value chain, asserting global leadership in immunosuppressant active pharmaceutical ingredients (APIs). It boasts an extensive array of complex fermentation-derived APIs spanning various therapeutic domains.

Operating across more than 70 countries, the company maintains a diversified international clientele. It nurtures enduring partnerships with significant clients and benefits from the expertise of seasoned promoters and a management team bolstered by prominent investors.

In terms of financial performance, the profit for the fiscal year ending in March FY23 surged to Rs 240 crore, a substantial increase from the previous year’s Rs 174.9 crore in FY22. However, it’s worth noting that the FY22 figures were lower than the profit recorded at Rs 234.9 crore in FY19. Notably, there has been a consistent upward trajectory in revenue, reaching Rs 853.2 crore in FY23, which is a notable rise from Rs 712.93 crore in FY22 and Rs 616.9 crore in FY21.

Regarding operational metrics, the EBITDA (earnings before interest, tax, depreciation, and amortization) experienced a year-on-year increase of 20.4%, reaching Rs 343.3 crore in FY23. However, this was juxtaposed with a decline of 21.5% to Rs 273.3 crore in FY22 compared to FY21. The margin for FY23 demonstrated improvement, escalating by 190 basis points (bps) on a yearly basis to 40.2%. In contrast, the margin for FY22 witnessed a significant decrease, plummeting by 1,547 bps in comparison to FY21.