All shares of Concord Biotech are expected to go public on Friday, following an initial public offering (IPO).
This research-based biopharmaceutical company's IPO has generated significant interest, with subscription demand for nearly 25 times the number of shares offered on the auction closing date.
Company shares have been allocated to the accounts of qualified bidders, according to an allocation process completed on Aug.
While the company's stock is about to be listed, the gray market or unlisted market indicates a rough start for the company.
According to topsharebrokers.com, Concord Biotech's gray market premium (GMP) stands at Rs 122 which shows a list price of Rs 863 for the company's shares. This represents a premium of around 16.5% against the issue price of Rs 741. Sharing a pre-listing perspective, Anubhuti Mishra, Equity Research Analyst at Swastika Investment Ltd, said: “The upcoming listing of Concord Biotech is expected to be as high as Rs 122 (Rs. 16.46%) per share, based on current GMP.. This means the stock could be listed at around Rs. 863 per share.
“Concord Biotech is a leading API company with a proven track record. However its international operations expose it to complex risks. In addition, the industry has recently faced pressure on profit margins. It should also be noted that this IPO is purely an SFO,” she added. Mishra added that all of these factors and the sentiment in the forex market “also affected his subscription rate”, of which he signed up only 3.78 times in the retail category, but received great feedback from qualified institutional buyers with 67.67x per signup.
“So we can expect moderate listing returns from this IPO and investors should consider booking post-listing profits,” she added.
