Concord Biotech IPO to deliver a strong listing pop? Here's what grey market premium suggests – Business Today

Feedback
Shares of Concord Biotech are likely to continue to extend the list of positive listings of mainboard IPOs. The company, which is scheduled to list on Friday, is likely to deliver a mild listing pop at the debut, if one goes by the signals from the grey market premium for the listing-bound company.

Last heard, the company was commanding a premium of Rs 120-125 per share, about 17 per cent higher compared to its issue price of Rs 741 apiece. Despite a mild improvement in the current week, the grey market premium stays corrected sharply from its peak around Rs 185-190 per share in the last week.

Concord Biotech is expected to be at a premium of around Rs 122 per share, based on the current signals. This would mean that the shares could list at a price of around Rs 863 per share. Concord Biotech is a leading API company with a proven track record. But its international operations expose it to various complex risks, said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart.
Also WATCH: How India can become the 3rd largest economy by 2027, and even surpass the US to become 2nd largest by 2075

“The industry has been facing margin pressure recently. It is also worth noting that this IPO was purely an OFS. All these factors and current market sentiment somewhere made an impact on its subscription rate as well. We can expect moderate listing gains from this IPO, and investors are advised to consider booking profits post-listing,” he said.

The Rs 1,551 crore primary offering of Concord Biotech had received a strong response from the investors during the three-day bidding process, which opened between August 4-8 The IPO of Concord Biotech was sold in the range of Rs 705-741 apiece, and was overall subscribed 24.87 times.

The portion for qualified institutional bidders was booked 67.67 times, while the non-institutional investors’ category was subscribed 16.99 times. The quota reserved for retail investors was subscribed 3.78 times, while the employee portion fetched 24.48 times bids.

Incorporated in 1984, Concord Biotech is a homegrown research and development (R&D) driven biopharma company. The company is ranked among the leading global developers and manufacturers of select fermentation-based APIs across immunosuppressants and oncology, marking its presence in more than 70 countries including India, Japan, US and Europe.
Also read: Hot stocks on August 17, 2023: Adani Power, Suzlon Energy, IRFC, Cipla and more
Also read: YES Bank, Tata Steel, SBI, Infosys, LIC, IRCTC shares: 11 of 15 top retail stock bets disappoint in 2023
Also watch: Coal India, ONGC, Chennai Petroleum, REC: Top 11 dividend-yielding PSU stocks
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today
Add Business Today to Home Screen
Home
Market
BT TV
Reels
Menu
Menu

source