Healthcare-focused private equity fund Quadria Capital will sell its entire 20% stake in active pharmaceutical ingredients (API) maker Concorde Biotech in the company’s initial public offering (IPO).
Rare Enterprises, which is owned by renowned market investor Rakesh Jhunjhunwala, who passed away early Sunday, is one of the shareholders of Concorde Biotech. According to the company’s draft red herring prospectus (DRHP), the IPO involves the sale of only 20.9 million shares by Quadria Capital. There is no primary fund raising plan by the company. No other shareholders of the company are reducing their stake in the company through IPO. Rare Enterprises holds about 24 per cent stake in the company.
IPO is expected to happen at least 2,000 crore in size, a person aware of the company’s IPO plans said on condition of anonymity. Quadria had invested approx. 500 crore for 20% stake in the company in 2016. on the issue of size 2,000 crore, Quadria Concorde Biotech will give four times return on investment.
In 2005, Hyderabad-based drug maker Matrix Labs bought a 58% stake in Concorde. However, when it was acquired by generic drug maker Mylan NV in 2006, Matrix sold its stake in Concorde back to promoters and Rare Enterprises.
Concorde Biotech is involved in fermentation and manufacturing of semi-synthetic biopharmaceutical APIs with immunosuppressants as its major therapeutic segment.
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