Shares of Concord Biotech saw strong demand in early trading, following a better-than-expected listing on exchanges on Friday. Investors rushed to buy goods to prolong the uptrend right from the first session but did not violate the listed price.
Shares of Concord Biotech debuted on Dalal Street at a 21% premium to the issue price of Rs 741 per share at Rs 900.05 on both the National Stock Exchange (NSE) and BSE, stronger expected. Analysts had expected the company to launch between Rs 840-860 each.
Following the strong listing, shares of Concord Biotech increased by 10% to Rs 987.05 per share, bringing the total gain to more than 33% above the given issue price. However, the stock fluctuated around Rs 930-940 as the first half of the trading session ended.
Analysts tracking the issue suggest investors book strong post-listing profits and suggest that long-term investors could enter the trade at lower levels. They are positive on the issue citing its growth potential but valuation continues to be a concern for them.
Concord Biotech is a leading API company with a proven track record. The company manufactures and exports APIs for many therapeutic areas. Anubhuti Mishra, Equity Research Analyst at Swastika Investmart, said the company’s international operations expose the company to a variety of complex risks.
“The industry has been facing margin pressure lately. Overall, Concord Biotech’s listing was in line with expectations. Solid fundamentals and the company’s good level of registration are factors. positive for this. IPO investors should consider booking profits after listing,” she added.
The Rs 1,551 preliminary offering of Concord Biotech backed by Rakesh Jhunjhunwala received a strong response from investors during the three-day bidding process, which opened from August 4 to 8. Concord Biotech’s IPO was sold for between Rs 705 – 741 each and registered 24.87 times overall.
The section for qualified institutional bidders was registered 67.67 times, while the category for non-institutional investors was registered 16.99 times. The quota for retail investors was registered 3.78 times, while the staff section received 24.48 times the bid.
As a leading global developer and manufacturer of selective fermentation-based APIs for immunosuppressants and oncology in terms of market share, broad geographic footprint, excellent underlying support great, we believe the company sees good growth potential ahead, we advise investors to book 100% profit upfront and possibly re-enter at lower levels, Mahesh M Ojha, AVP – Research at Hensex Securities said.
Founded in 1984, Concord Biotech is a domestic research and development (R&D) oriented biopharmaceutical company. The company ranks among the leading global developers and manufacturers of selective fermentation-based APIs in cancer and immunosuppressants, marking its presence in more than 70 countries including India, Japan, USA and Europe.
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