E-Paper
This Rekha Jhunjhunwala-backed biotech firm made market debut today. See how its value zoomed
Concord Biotech Ltd, supported by RaRe Enterprises, saw its shares surge by 33.3% in early trades, reaching a valuation of over ₹10,300 crore.
Concord Biotech Limited, a biopharmaceutical company supported by Rekha Jhunjhunwala's RaRe Enterprises, made a strong market debut on Friday. The shares of the Ahmedabad-based company surged by as much as 33.3 per cent in early trades, propelling its valuation to over ₹10,300 crore.
The opening price for Concord Biotech was ₹900.05, which marked a 21 per cent premium compared to its initial public offering (IPO) price of ₹741. Throughout the morning session, the stock remained above that threshold, reaching its peak at 987.7 rupees.
This impressive debut in trading aligns with a backdrop where the domestic benchmarks have receded from their record highs achieved earlier in the year. Factors such as moderating foreign fund inflows, concerns about interest rate hikes by the U.S. Federal Reserve, and apprehensions regarding China's growth have contributed to this pullback.
As of 12:45 pm, benchmark Nifty 50 and S&P BSE Sensex were both down by more than 0.45 per cent.
The primary aim of Concord Biotech's IPO was to facilitate an offer for the sale of 2.09 crore equity shares by Helix. As per the exchange filing, the company itself will not receive any proceeds from this share sale. Furthermore, the offer included a reserved portion for subscriptions by eligible employees.
During the bidding process that concluded on August 8, the 15.51 billion-rupee offering was oversubscribed by 24.87 times, according to data from the National Stock Exchange.
Rekha Jhunjhunwala's backing
With the passing of Rakesh Jhunjhunwala, Rekha Jhunjhunwala now holds complete ownership of Concord Biotech's shares. The husband-wife duo initially invested in the company in 2004. Following the demise of the renowned 'Big Bull' of the Indian stock market, she became the sole owner of the entire 24.09% stake in the company. This ownership is facilitated through RaRe Enterprises, a company owned by Rekha Jhunjhunwala.
Trading debuts have seen a good performance this year
This year, a rally in India's equity market, driven by improved domestic sentiment, has buoyed stock listings. Notably, companies like Mankind Pharma, Blackstone's Nexus Select Trust, and drone manufacturer ideaForge Technology have all experienced surges in their trading debuts.
(Inputs from Reuters)
