Concord Biotech, which is backed by late billionaire investor Rakesh Jhunjhunwala’s RARE Enterprises, has filed its draft red herring prospectus for an initial public offering (IPO) with capital markets regulator Securities and Exchange Board of India (SEBI).
The Ahmedabad-based Active Pharmaceutical Ingredients (API) maker’s IPO is entirely an offer for sale (OFS) of 2,09,25,652 equity shares by Helix Investment Holdings Pte Limited, according to its draft papers filed with SEBI.
Helix, backed by Quadria Capital Fund L.P., a healthcare-focused private equity fund in Asia, and other co-investors, holds 20% of the company’s fully-subscribed and paid-up equity share capital.
The company said it will not receive any proceeds from the offer as it will be paid directly to the selling shareholder.
The objects of the offer are to (i) achieve the benefits of listing the equity shares on the stock exchanges; and (ii) carry out the offer for sale of up to 20,925,652 equity shares by the selling shareholder.
The company expects the proposed listing of its equity shares will enhance its visibility and brand image as well as provide a public market for the Equity Shares in India.
Founded in the year 2000, Concord Biotech manufactures Active Pharmaceutical Ingredients through fermentation and semi-synthetic process and finished formulations. The company has transformed from a single-product company to a broad-spectrum solution provider, offering products across diversified therapeutic segments.
The drugmaker has three manufacturing facilities and two research and development (R&D) units, which are all located in Gujarat.
The biotech firm’s revenue from operations jumped to ₹713 crore during the financial year 2021-22 from ₹617 crore in the previous fiscal. The company’s profit after tax fell to ₹175 crore in FY22 from ₹235 crore in the previous financial year.
As of March 31, 2022, the pharma company had a portfolio of 56 brands and 65 products, including 22 APIs and 43 formulations.
The drugmaker claims it has a presence in more than 50 countries worldwide, with distribution infrastructure in markets like North America, Europe, Japan, Central & Latin America, Africa, Australia, New Zealand, Asia-Pacific as well as CIS and MENA countries, besides having significant presence in India market.
Concord Biotech entered into the formulations segment in 2016 to capitalise on the benefits of backward integration that its presence in APIs provides. In India, it markets a portfolio of 27 brands across immunosuppressants, nephrology drugs and anti-infective drugs for critical care.
“We have a presence across 20 states and five union territories in India, through our sales team. We also have a B2B contract development manufacturing organization (CDMO) business where we supply immunosuppressants to the Indian market,” says the company.