Concord Biotech, backed by the late Rakesh Jhunjhunwala’s RARE Trusts fund, started trading at 21.46% above its IPO price on Aug. 18, beating analysts’ expectations of 15%. Shares opened the day at Rs 900.05 on the BSE and NSE, compared to a public issue price of Rs 741 per share.
Most experts believe that stagnant market conditions over the past three weeks have had an impact on listing activity. In addition to sluggish market conditions, the company’s failure to raise money from its public offering and unstable financial performance in the past were other reasons listed by them.
The Ahmedabad-based pharmaceutical company’s initial public offering, which included only a portion of its Offering (OFS), was registered 24.87 times between August 4 and 8. qualified institution (QIB) purchases 67.67 times the allocated quota and a high net worth individual (HNI) 16.99 times. Individual and employee-specific units have been registered 3.78 times and 24.48 times.
The gray market biotech pharmaceutical company’s recent transaction fee was about 15% of the final issue price, which has dropped significantly over the past two weeks. After the IPO price range was announced earlier this month, it was trading at 35-40% above the upper range.
The gray market is the unofficial market for IPO shares, which can be bought and sold until listing. Concord Biotech has raised Rs 1,551 crore through the public offering of 2.09 crore of shares. Helix Investment Holdings, backed by Quadria Capital Fund LP excluding issuance costs, received all proceeds from the IPO and exited the company by selling its entire 20% stake through the IPO. IPOs.
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