India's Concord Biotech Gained 33% at its Debut and is Valued at over $1 billion

In its market debut on later this week, Concord Biotech's shares rose as much as 33.3%, valuing the biopharmaceutical business at more than 103 billion rupees ($1.24 billion). The company, which has its headquarters in Ahmedabad, Gujarat, started at 900.05 rupees, a 21% premium over its initial public offering (IPO) price of 741 rupees. It continued to rise throughout the morning session, peaking at 987.7 rupees. Concord Biotech was established in 2000 and produces both completed dosages and active pharmaceutical ingredients, which are the essential physiologically active components of a medicine.

"Concord has managed to list above the street's expectations of a 15% gain," said Prashant Tapse, senior vice president of research at Mehta Equities. "Even in a subdued equity market." We are hopeful about the company's fermentation and API businesses in the long run, as well as the overall biopharma industry. The spike in trading debuts comes at a time when Indian benchmarks have fallen from record highs reached in the first half of the year as a result of slowing foreign investor inflows, fears about U.S. Federal Reserve interest rate hikes, and growth concerns in China. At 11:24 a.m. IST, the benchmark Nifty 50 and S&P BSE Sensex in India were each down 0.4%. According to its prospectus, the IPO of Concord included 20.9 million shares offered by current investors, indicating that the funds would go to the selling shareholders only and not the firm as a whole. According to information from the National Stock Exchange, the 15.51 billion rupee offering was subscribed 24.87 times at the conclusion of the bidding procedure on August 8. Mankind Pharma, Blackstone's Nexus Select Trust, and drone manufacturer ideaForge Technology all had successful trade debuts earlier this year as a result of a rebound in India's share market that was sparked by an improvement in domestic confidence.