Rare Enterprises and Quadria Capital-backed Concord Biotech has filed draft papers for IPO with market regulator Sebi.

The Ahmedabad-based company develops and manufactures select fermentation-based APIs across immunosuppressants and oncology.

The proposed issue will be a complete offer for sale (OFS), aggregating to 20,925,652 equity shares by Helix Investment Holdings Pte. Limited. The offer would include a reservation for a subscription by eligible employees.

Helix is ​​backed by Quadria Capital Fund LP, a healthcare-focused private equity fund in Asia, which along with other co-investors, holds 20 per cent of the company’s fully subscribed and paid-up equity share capital. It is also backed by Rare Enterprises, late ace investor Rakesh Jhunjhunwala’s company. Utpal Sheth, who has been with Rare Enterprises since 2003, is a non-executive nominee director of the company.

As per an F&S report, Concord Biotech commands a market share of over 20 per cent by volume in 2021 across identified fermentation-based API products including dactinomycin, sirolimus, tacrolimus, mycophenolate sodium, and cyclosporine. It supplies to over 70 countries including regulated markets such as the United States, Europe, Japan, and India.

As of March 31, the company had a portfolio of 56 brands and 65 products including 22 APIs and 43 formulations. In addition, it had 80 out-licensed formulations that were distributed in India under the company’s brands.

The Ahmedabad-based biopharma firm has three production sites in Gujarat. Some of Concord Biotech’s API clients include Intas Pharmaceuticals and .

As of March 31, the company had over 200 customers and its ten largest clients had a relationship with them for an average of nine years in FY22.

It plans to increase its wallet share from its existing API customers and pursue growth in formulations in India, Emerging Markets, and the United States.

For FY22, the company saw a 15.56 per cent YoY jump in revenue from operations at Rs 712.93 crore over Rs 616.94 crore in FY21. The rise was seen primarily due to an increase in sales volume of its products to existing customers; sales to its new customers; and an increase in prices of some of the products, which was partially offset by the decrease in prices of certain products.

Profit for the year stood at Rs 174.93 crore.

Capital Company, Citigroup Global Markets India, and Jefferies India Private Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.


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By Dipak

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