MUMBAI, 17 JANUARY, 2023 (GPN): Innova Captab, an integrated pharmaceutical company in India with a presence across the pharmaceuticals value chain including research and development, manufacturing, drug distribution and marketing and exports has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).

The company had filed preliminary IPO papers with Sebi on July 07, last year.

The issue with a face value of Rs 10 per equity share consists of a fresh issue of equity shares worth up to Rs 400 crore and an offer-for-sale (OFS) up to 9,600,000 equity shares by Promoter and selling shareholders, which comprises of up to 3,200,000 by Manoj Kumar Lohariwala, up to 3,200,000 by Vinay Kumar Lohariwala (Promoter Selling Shareholders) and up to 3,200,000 by Gian Parkash Aggarwal (Other Selling Shareholders).

The company, in consultation with the lead bankers to the issue may consider a private placement or preferential issue of equity shares or any other method aggregating up to Rs 80 crore. If such placement is completed, the fresh issue size will be reduced.

The proceeds from its fresh issuance worth Rs. 180.50 crore will be utilised for repayment and/or prepayment, in part or in full, of certain outstanding loans, Rs 29.50 crore for investment in subsidiary, UML, for repayment and / or prepayment in part or full of an outstanding loan availed, Rs 90 crore for funding working capital requirements and for general corporate purposes.

The Haryana based drugmaker, in terms of operating revenue, was the second largest formulation CDMO in India in Fiscal 2021 and the third fastest growing formulation contract development and manufacturing organization (“CDMO”) over the period Fiscal 2019 to Fiscal 2021. Its business includes contract development and manufacturing organization business providing manufacturing services to Indian pharmaceutical companies, domestic branded generics business and an international branded generics business.

ICICI Securities Limited and JM Financial Limited are the book running lead managers and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.Ends

Sebi Link:  https://www.sebi.gov.in/filings/processing-status/jan-2023/processing-status-issues_59558.html