Concord Biotech, which is backed by late Rakesh Jhunjhunwala’s RARE Trusts, has been listed at 21% premium over its issue price in initial public offering (IPO), beating analysts' expectation of 15% premium.
Concord Biotech stock opened at Rs 900.05 per share on BSE and NSE both, against the public issue price of Rs 741 per piece. Experts believe that the subdued market conditions in the last three-odd weeks had some impact on the listing performance.
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The Ahmedabad-based pharma company had comprised only an offer-for-sale (OFS) portion and was subscribed 24.87 times between August 4-8 with qualified institutional buyers (QIBs) buying 67.67 times the allotted quota and high net-worth individuals (HNIs) 16.99 times. The portions set aside for retail investors and employees were subscribed 3.78 times and 24.48 times.
The grey market premium (GMP) trading of the pharma company was reportedly around 15% to the final issue price. GMP is an unofficial market for IPO shares, which can be bought and sold till the listing.
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After the IPO price band announcement at the beginning of this month, it was quoting at a premium of 35%-40% over the upper price band.
The pharma company raised over Rs 1,551 crore from the public issue of 2.09 crore equity shares. Helix Investment Holdings, which is backed by Quadria Capital Fund LP, barring issue expenses, has received all the IPO money and exited the company by selling its entire 20 percent stake through the IPO.