Jhunjhunwala-backed Concord Biotech to hit IPO market

Quadria had invested Rs 475.30 crore in 2016 for the 20% stake. Rare Enterprises holds about 24% stake in Concord Biotech.
Rakesh Jhunjhunwala
Rakesh Jhunjhunwala

NEW DELHI: The show goes on at Rakesh Jhunjhunwala’s investment arm Rare Enterprises. Two days after the demise of the billionaire investor, it is known that Rare Enterprises-backed Concord Biotech has filed its draft red herring prospectus (DRHP) with the market regulator SEBI to raise funds via an initial public offering (IPO).

According to the draft paper, the IPO consists of a pure offer-for-sale of up to 2.09 crore shares or the entire 20 per cent stake by its promoter Helix Investment Holdings, which is backed by Quadria Capital Fund LP, a healthcare-focused private equity fund in Asia. Quadria had invested Rs 475.30 crore in 2016 for the 20 per cent stake. Rare Enterprises holds about 24 per cent stake in Concord Biotech.

The Ahmedabad-based biopharma firm’s revenue from operations rose to Rs 713 crore in financial year (FY) 2022 from Rs 617 crore in the preceding financial year. However, profit after tax came down to Rs 175 crore in FY22 from Rs 235 crore in the previous fiscal. As of March 2022, it had a portfolio of 56 brands and 65 products, including 22 APIs and 43 formulations. The company, however, hasn’t disclosed details of the IPO such as the offered size or the price band.

In another instance, Rare Enterprises bought 4,250,000 shares at Rs 53.50 apiece in sewing machine firm Singer India through a bulk deal. Post this purchase, Rare’s stake in Singer is pegged at 10 per cent Singer India is said to be the last investment decision of Jhunjhunwala. Shares of Singer India locked in an upper circuit of 20 per cent on Tuesday. The scrip closed at Rs 69.15 on the BSE against the previous close of Rs 57.65.

Jhunjhunwala, who was battling health problems for a while, was declared dead Sunday morning at the age of 62. With a net worth of USD 5.8 billion, Jhunjhunwala was probably the most influential investor in the Indian equity market.

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