Concord Biotech Limited IPO Closed

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IPO date 04 Aug 2023 – 08 Aug 2023
Listing date 18 Aug 2023
Price range 705 – 741
Minimum order quantity 20
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Established in 1984, Concord Biotech Limited is an R&D-driven biopharma company having a global presence, supplying to over 70 countries. The company is ranked among the leading global developers and manufacturers of select fermentation-based APIs across immunosuppressants and oncology in terms of market share, based on volume in 2022.

The company has a market share of over 20% by volume in 2022 across identified fermentation-based API products, having a portfolio of 57 brands and 77 products manufactured by them including 23 APIs and 53 formulations. As of March 31, 2023, they had 80 out-licensed formulations which they distributed in India under their brands.

Revenue from operations - Geography-wise (%)

Particulars FY23 FY22 FY21
India 51 47 41
America 17 19 26
Rest of the world 32 34 33

About the industry:

India's domestic healthcare market is growing rapidly and is projected to grow at a CAGR of 8%-10% from 2023 to 2026 primarily due to the improving private insurance coverage and greater willingness to spend on healthcare.

India is a crucial supplier of generic drugs, supplying to address almost 40% of the total U.S. generic drug (formulation) demand and approximately 25% of the total drug demand in the United Kingdom.

According to the Indian Brand Equity Foundation, India also accounts for 60% of global vaccine production, contributing 70% of the WHO’s demand. This success can be attributed to the advanced capabilities in formulation manufacturing, the capability to meet global standards and governmental support.

According to the Ministry of Commerce & Industry, while India's formulations are expected to grow, and they accounted for approximately 77% of the pharmaceutical export share in the Financial Year 2023, there are opportunities to address bottlenecks in raw material (active pharmaceutical ingredients (“APIs”) and key starting materials (“KSMs”) manufacturing and expand its current share of approximately 18% in pharmaceutical exports in the Financial Year 2023.

The global API market was valued at approximately USD 219 billion (INR 18,157 billion) in 2022, which constitutes about 16% of the total pharmaceutical formulations market and is expected to reach approximately USD 278 billion (INR 23,051 billion) by the year 2026, at a projected CAGR of 6.1% over the forecast period of 2022 to 2026. Of the total market, biological APIs accounted for 37% of the share in 2022, and small molecule drug APIs accounted for the remainder of 63% share.

The Rs. 1551 crore public offer of Concord Biotech Limited purely comprises an OFS by one of the promoters.

Financial information and other valuation metrics (₹ crores)

Financial Year Total Assets Total Revenue Profit After Tax EPS EBITDA
March 31, 2021 1182.55 630.8 234.9 22.45 327
March 31, 2022 1312.8 736.3 175 16.72 269.6
March 31, 2023 1514 888.4 240.1 22.95 345.2

Comparison with some of the listed peers (As on 31st March 2023):

Company Operating Income (₹ crores)  PE Ratio EPS
Concord Biotech 853 32.29 22.95
Divi’s lab 7767.5 54.15 68.69
Suven pharma 1340.3 30.08 16.16
Laurus labs 6040.5 23.7 14.69
Shilpa Medicare 1050.1 NA -3.74

Risk factors to consider:

High dependence on Chinese imports: The company procures 50% of the total cost of material that is dependent on imports from China. Any Disruptions to or restrictions on the supply of raw materials from China may adversely affect our business, financial condition, and results of operations.

Geographical concentration: A slowdown or shutdown in the manufacturing or research and development operations, all located in Gujarat, India, could adversely affect the business, financial condition, and results of operations.

Dependency on key customers: Company’s top 5 customers and top 10 customers contribute 34% and 44% respectively. Any significant reduction in demand for the products from such customers may adversely affect the business and results of operations.

Competitive industry: The pharmaceutical industry in which the company operates is highly competitive with a lot of regulatory and pricing issues due to competition.

IPO Schedule

Issue Period 4th August to 8th August 2023
Deadline for accepting UPI mandate Until 5 PM on the issue closing day
Finalization of Allotment 11th August 2023
Initiation of Refunds 14th August 2023
Credit of Shares 17th August 2023
Date of Listing 18th August 2023
Mandate end date 23rd August 2023
Anchor Investors Lock-In End Date 7th September 2023

How to apply to the Concord Biotech Limited IPO?

You can apply for the Concord Biotech Limited IPO using any supported UPI app by following two steps:
  • Enter your bid on Kite
  • Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.

How to check the allotment status for Concord Biotech Limited IPO?

You can check the allotment status for the Concord Biotech Limited IPO on the website of the Registrar and Transfer agent. Alternatively, you can also check the allotment status on the NSE website.