Concord Biotech up 33 percent in debut, nets over USD 1 billion in valuation
Bengaluru: Shares of India's Concord Biotech climbed as much as 33.3 per cent in their market debut on Friday, valuing the biopharma company at more than 103 billion rupees ($1.24 billion).
The Ahmedabad, Gujarat-based company opened at 900.05 rupees, a 21 per cent premium compared with its initial public offer (IPO) price of 741 rupees. It stayed above that mark through the morning session, hitting its highest at 987.7 rupees.
Founded in 2000, Concord Biotech makes active pharmaceutical ingredients - the key biologically active elements in a drug - as well as finished dosages.
"Even in a subdued equity market, Concord has managed to list above the street's expectations of a 15 per cent gain," said Prashant Tapse, senior vice president of research at Mehta Equities.
"We are optimistic (about) the company's fermentation and API businesses as well as the global biopharma sector in the long term."
The surge in trading debut comes when Indian benchmarks have retreated from record highs hit in the first half of the year due to moderating fund inflows from foreign investors, worries over interest rate hikes by the U.S. Federal Reserve and growth concerns in China.
India's benchmark Nifty 50 and S&P BSE Sensex were down 0.4 per cent each at 11:24 a.m. IST.
Concord's IPO comprised 20.9 million shares on offer from existing stakeholders, according to its prospectus, implying the proceeds would go to the selling shareholders alone and not the company.
The 15.51 billion-rupees offering was subscribed 24.87 times at the end of the bidding process on Aug. 8, according to data from the National Stock Exchange.
Earlier this year, a rally in India's equity market, fuelled by improved domestic sentiment, fired up stock listings, with Mankind Pharma, Blackstone's Nexus Select Trust and drone maker ideaForge Technology all surging in their trading debuts.
Read also: Concord Biotech files IPO papers with SEBI
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