The primary market continues to see a surge in fundraising activities with three firms - Concord Biotech and other two from the SME (small and medium enterprise) segment - set to launch their initial public offerings (IPOs) to collectively raise around ₹1,600 crore. Besides, small finance bank Jana Small Finance Bank, FMCG company Onest, and Indegene, which provides research and development and management services to healthcare and pharmaceutical enterprises, have filed a draft red herring prospectus (DRHP) with the capital market regulator SEBI for fundraising via IPO route. So far this year, domestic bourses, BSE and NSE, have seen 14 listings.
Here is all you need to know about Concord Biotech and other IPOs before they open for subscription today:
Concord Biotech
The biotechnology company, backed by big bull Rakesh Jhunjhunwala's RARE Enterprises, is planning to raise between ₹1,498-1,551 crore at a price band of ₹705-741 per share. At the upper end of the price band, the company aims to raise ₹1,551 crore by issuing over 2.09 crore equity shares, or 20% of paid-up equity. The three-day IPO will open for subscription today and will close on August 8.
The IPO of the Ahmedabad-based company is completely an offer for sale (OFS) by Quadria Capital-backed Helix Investment Holdings Pte, which is exiting the company by selling its entire 20% stake in the company. The company has also reserved up to 10,000 equity shares for its employees, which will be offered at a discount of ₹70 per share to the final offer price.
The lot size for the IPO is 20 equity shares and in multiples of 20 shares thereafter. This means, the retail investors will have to invest a minimum of ₹14,820 to apply for a single lot and a maximum of ₹1,92,660 for 13 lots (260 shares) at the upper price band, as they can invest up to ₹2 lakh in the IPO.
As per the document filed with SEBI, the company has reserved half of the offer size for qualified institutional buyers including anchor book, 15% for high-networth individuals, and the remaining 35% for retail investors.
Established in 1984, Concord Biotech is a homegrown R&D-driven biopharma company, which manufactures Active Pharmaceutical Ingredients (API) through fermentation & semi-synthetic process and finished formulations.
SME Segment
From this segment, IT solutions and consultancy firm Yudiz Solutions and healthcare organisation Sangani Hospitals will launch their public offer today. Both companies are proposed to be listed on the NSE SME exchange.
Yudiz Solutions
The initial share sale of the IT solutions and consultancy services firm will open for bidding today and will close on August 8. The price band of the public offer has been fixed at ₹162 to ₹165 apiece. At the upper end of the price band, Yudiz Solutions IPO size is worth ₹44.84 crore. The lot size is 800 shares, which means the minimum amount required to apply for this SME IPO is ₹1.32 lakh.
The company will use IPO proceeds to meet the expenses for unidentified acquisition for the company, expenses for the development of new products and technologies, and general corporate purposes.
Sangani Hospitals
The IPO of the healthcare firm will open for subscription today and will close on August 8. The IPO comprises a fresh issue of 37.92 lakh equity shares of face value of ₹10 each, which will be offered at a price band of ₹37 to ₹40 per share. At the upper end of the price band, Sangani Hospitals IPO size is worth ₹15.17 crore. The lot size is 3,000 shares and the minimum investment amount required for retail investors is ₹120,000.
The company intends to use capital raised from the issue of fresh shares to meet the capital expenditure for expansions in Sangani Hospital at Keshod and Sangani Super Speciality Hospital at Veraval, in Gujarat as well as for general corporate purposes.
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