Shares of Jhunjhunwala family-backed Concord Biotech gained as much as 33 per cent during their stock market debut on Friday. The stock hit a high of 987 and a low of Rs 900 on the BSE. Concord finally settled at Rs 942, up Rs 201, or 27 per cent, over its issue price of Rs 741.
The strong listing follows healthy demand for the shares of Gujarat-based bulk drug maker in its Rs 1,551-crore initial public offering (IPO). The maiden share sale saw nearly 25 times more demand than shares on offer.
Concord Biotech’s IPO is entirely an offer for sale by Helix Investment. Late Rakesh Jhunjhunwala’s investment arm Rare Enterprises owns a 24.1 per cent in the company. At the last close, the company was valued at Rs 9,853 crore.
Based on the IPO price and FY23 financials, Concord was valued at 32.3x P/E, 22.5x EV/EBITDA and 9.1x EV/Sales. Analysts said the company’s key strengths includes global leadership in immunosuppressant active pharmaceutical ingredients (APIs), strong presence across the complex fermentation value chain, scaled manufacturing facilities and strong R&D capabilities.