Concord Biotech IPO: A Good Investment for Pharma Sector?

Concord Biotech Limited is a pharmaceutical company that develops, manufactures, and markets APIs (active pharmaceutical ingredients) for the global market. The company is coming up with an initial public offering (IPO) of 20,925,652 equity shares of ₹10 each. The IPO is priced at ₹705 to ₹741 per share, with a face value of ₹10. The issue opens for subscription on August 4, 2023, and closes on August 8, 2023.

Concord Biotech is a well-established company with a strong track record of growth. The company has been growing at a CAGR of 20% over the past five years. In FY22, the company's revenue was ₹1,165 crores, and its net profit was ₹189 crores.

The company has a strong product portfolio of APIs for a wide range of therapeutic areas, including oncology, cardiovascular, and anti-infectives. The company's APIs are exported to over 50 countries worldwide.

Concord Biotech has a strong research and development (R&D) team that is constantly developing new APIs. The company has a pipeline of over 20 new APIs that are in various stages of development.

Concord Biotech is a profitable company with a good track record of growth. The company has a strong product portfolio, a global reach, and a strong R&D pipeline. The IPO is priced at a reasonable valuation, and it could be a good investment opportunity for investors looking for exposure to the pharmaceutical sector.

Know more about Concord Biotech IPO.

Here are some of the key factors to consider before investing in the Concord Biotech IPO:

• The company has a strong track record of growth.

• It has a well-established product portfolio.

• It has a global reach.

• It has a strong R&D pipeline.

• The IPO is priced at a reasonable valuation.

However, there are also some risks associated with investing in the Concord Biotech IPO:

• The company is still relatively small, and it has limited experience in the global market.

• The pharmaceutical industry is highly regulated, and there are risks associated with compliance with regulations.

• The company is exposed to risks such as changes in government regulations and fluctuations in commodity prices.

Overall, the Concord Biotech IPO is a good investment opportunity for investors looking for exposure to the pharmaceutical sector. However, investors should carefully consider the risks associated with the investment before making a decision.

Here are some additional details about the Concord Biotech IPO:

• The company is raising ₹1,551 crores through the IPO.

• The proceeds from the IPO will be used to fund the company's growth plans, including expansion of its manufacturing facilities, development of new APIs, and marketing and sales initiatives.

• The IPO is being managed by Kotak Mahindra Capital Company, Axis Capital, and ICICI Securities.

• The shares are proposed to be listed on the BSE and NSE.