IPO listed on 18 Aug'23
Concord Biotech Ltd
Minimum Investment
₹ 14,820 / 20 shares
Grey market premium
₹ 185 (25% premium)
Issue price
₹ 741
Listing price
₹ 900
% since launch
Listing on
August 18, 2023
Our Verdict:
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- Concord Biotech, a prominent player in therapeutic fields like immunology, oncology, and anti-infectives, has demonstrated solid growth and consistent profits. With a strong presence in fermentation-based APIs, the company is well-positioned to capitalize on the anticipated market expansion in these therapeutic areas.
- From a valuation standpoint too, the IPO seems reasonably priced at a PE multiple of 32x. Investors seeking long-term returns should consider subscribing. Concord's strategic position, backed by its manufacturing capabilities and global presence, aligns it to take advantage of the industry's fundamental growth trends, positioning it as a prospective investment for the future.
About the company
Founded in
23 Nov'84
Managing director
Sudhir Vaid
- Concord Biotech Ltd is a leading manufacturer of select fermentation-based APIs across immune-suppressants and oncology. They supply their products to 70+ countries, including regulated markets like the United States, Europe and Japan besides India.
- Nearly 50% of the company’s total revenue is generated from exports. In 2022, it secured ~20% of the market share by volume for identified fermentation-based API products.
STRENGTHS
- Strong Track Record: Concord shows remarkable growth over the last three years, boasting 18.5% CAGR in consolidated revenue to Rs 853.2 crore and 18.9% CAGR in EBITDA to Rs 343.3 crore in FY23. The company has maintained a high profit margin given its specialized and complex product portfolio, with FY23 EBITDA margin at 40.47%.
- Sound Financial Metrics: Across FY20-23, the company reported 16.7% CAGR in positive operating cash flows and stable balance sheets with negative net-debt levels. The average pre-issue Return on Invested Capital (RoIC) and Return on Equity (RoE) stood at 17.2% and 20%, respectively.
- Dividend Consistency: Concord has been a reliable dividend payer with a dividend payout ratio of over 30% for the past eight years, indicating stability in operations.
RISK FACTORS
- Inconsistency in the Bottom-Line: Even though the top-line demonstrated growth over the previous three fiscal years, the bottom-line underwent a considerable reduction in FY22, plummeting from Rs 235 crore in FY21 to Rs 175 crore in FY22.
Issue details
Issue type
Mainstream
Issue size
₹ 1,551 crore
Fresh Issue
₹ -
OFS
₹ 1,551 crore
Price range
₹ 705 - 741
Lot size
20 shares
Issue Objective
This is a pure offer for sale and hence, none of the proceeds of the IPO will go to the company.
Dates
Bidding open
4 Aug'23
Bidding close
8 Aug'23
Allotment date
11 Aug'23
Refund date
14 Aug'23
Listing
18 Aug'23
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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