Late billionaire investor Rakesh Jhunjhunwala's firm Rare Enterprises-backed Concord Biotech has filed its draft red herring prospectus (DRHP) with capital markets regulator Securities & Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO).
Concord Biotech IPO is entirely an offer-for-sale (OFS) of 2.09 crore equity shares by Helix Investment Holdings Pte Limited, which is backed by private equity firm Quadria Capital, according to its draft papers.
As it's a pure OFS, the company will not receive any proceeds from the offer. The company said that the objects of the offer are to achieve the benefits of listing the equity shares and carry out the OFS by the selling shareholder.
Concord is among the leading manufacturers of fermentation-based biopharmaceutical APIs, focused on niche segments such as immunosuppressant, oncology, anti-fungal and anti-bacterial. It has three manufacturing facilities in Gujarat.
The company is backed by Quadria Capital Fund and Rare Enterprises, which was set up by billionaire investor Rakesh Jhunjhunwala, along with his wife Rekha. The veteran stock market investor passed away on Sunday.
Ahmedabad-based biopharma firm's revenue from operations rose to ₹713 crore for the financial year 2022 from ₹617 crore in the preceding financial year. However, profit after tax dropped to ₹175 crore in FY22 from ₹235 crore in the previous fiscal.
As of March 2022, it had a portfolio of 56 brands and 65 products, including 22 APIs and 43 formulations. In addition, it has filed over 120 drug master files (DMFs) across several countries.
Kotak Mahindra Capital Company, Citigroup Global Markets India and Jefferies India are the book-running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.
