Healthcare-focused private equity fund Quadria Capital will sell its entire 20% stake in active pharmaceutical ingredients maker Concord Biotech in the company’s initial public offering (IPO).
Rare Enterprises, owned by ace market investor Rakesh Jhunjhunwala who died early on Sunday, is among the shareholders of Concord Biotech. The IPO consists of only a secondary share sale by Quadria Capital, involving sale of 20.9 million shares, according to the company’s draft red herring prospectus (DRHP). No primary funds are planned to be raised by the company. No other shareholders of the company are diluting their shareholding in the company through the IPO. Rare Enterprises holds around 24% stake in the company.
The IPO is expected to be at least ₹2,000 crore in size, a person aware of the company’s IPO plans said on the condition of anonymity. Quadria had invested around ₹500 crore in the company in 2016 for a 20% stake. At an issue size of ₹2,000 crore, Quadria will make four times returns on the Concord Biotech investment.
In 2005, Hyderabad-based drug maker Matrix Lab bought a 58% stake in Concord. However, when it was acquired by generic drug maker Mylan NV in 2006, Matrix sold its stake in Concord back to the promoters and Rare Enterprises.
Concord Biotech is involved in manufacturing fermentation and semi-synthetic biopharmaceutical APIs with immunosuppressants as its key therapeutic segment.