Concord Biotech IPO Subscribed 0.58x On Day 1, What GMP Signals Ahead of Share Allotment?

On the first day of bidding, 0.58 of the initial public offering (IPO) for Ahmedabad-based Concord Biotech Limited was subscribed.

According to information available on the stock exchanges, the issue got bids for 85,05,680 shares against the 1,46,50,957 equity shares that were offered, at a price range of Rs 705-741.

The Employee Portion received 5.73 times more subscriptions than Non-Institutional Investors Portion, which received 1.01 times net subscriptions. Retail was subscribed 0.72 times, but only 0.01 times for the qualified institutional buyer portion. On Friday, August 4, 2023, subscriptions for the issue opened, which will end on Tuesday, August 8, 2023. Employees who are eligible are given a discount of Rs 70 per equity share when they participate in the employee reservation portion of the bidding.

Concord Biotech Ltd raised Rs 465 crore from anchor investors the day before the initial public offering opened. Foreign Investors and Domestic Institutions who participated in the anchor were The government of Singapore, Abu Dhabi Investment Authority, Government Pension Fund Global, Polar Capital Funds, HSBC Mutual Fund, WF Asian Reconnaissance Fund, Amundi Funds, The Prudential Assurance Company and Pinebridge Global Funds, Nippon Life, UTI Mutual Fund, DSP Mutual Fund, Franklin Mutual Fund, SBI Life Insurance, Motilal Oswal Mutual Fund, Edelweiss Trusteeship, Invesco India, Bandhan Mutual Fund, Aditya Birla Sun Life, Max Life Insurance and Tata AIA Life Insurance.

The issue has received a "SUBSCRIBE" rating from reputable brokerage firms like Motilal Oswal, LKP Research, Reliance Securities, Choice Broking, Hensex Securities, Hem Securities, and SMC Capital.

The book-running lead managers for the issue are Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, and Jefferies India Private Limited, while Link Intime India Private Limited is the registrar.

The main-board IPO for Concord Biotech comprises 20,925,652 equity shares with a face value of Rs 1, totalling up to Rs 1,551.00 crores. The price band of Concord Biotech IPO is fixed between Rs 705 to Rs 741 per share. The IPO commences on August 4 and will end on August 8, 2023. A total of 20,925,652 shares are being offered in the Concord Biotech IPO. 4,183,130 shares of QIB are reserved (19.99%), 7,320,479 shares of RII are reserved (34.98%), and 3,137,348 shares of NII are reserved (14.99%).

The share allotment will be completed on Friday, August 11, and the company will list on the BSE and NSE platforms on Friday, August 18. Concord Biotech IPO latest GMP today is Rs 185, as of Aug 6th 2023 07:00 AM. The expected listing price for the Concord Biotech IPO is Rs 926 (cap price + today's GMP), taking into account the upper price band of Rs 741.00. As a result, according to market observers, Concord Biotech is displaying an impressive listing premium of 24.97% based on the latest GMP.