• Price Band of Rs 426 – 448 per equity share bearing face value of Rs 10 each (“Equity Shares”)
• Bid/Offer Opening Date – Thursday, December 21, 2023 and Bid/Offer Closing Date – Tuesday, December 26, 2023.
• Minimum Bid Lot is 33 Equity Shares and in multiples of 33 Equity Shares thereafter.
• The Floor Price is 42.60 times the face value of the Equity Shares and the Cap Price is 44.80 times the face value of the Equity Shares.

MUMBAI, 18 DECEMBER, 2023 (GPN)– Innova Captab Limited An Integrated Pharmaceutical Company Specialising in Contract Development and Manufacturing Organization (“CDMO”) Businesses has today fixed a price band of Rs 426-448 per share for its Rs 570-crore initial public offering (IPO). The issue will open on December 21, and conclude on December 26, the company said at a press conference in Mumbai.

The maiden public issue comprises a fresh issue of equity shares worth up to Rs 320 crore and an offer-for-sale (OFS) of up to 55.80 lakh equity shares by promoters and selling shareholders.

Those selling shares in the OFS are — Manoj Kumar Lohariwala, Vinay Kumar Lohariwala, and Gian Parkash Aggarwal.

At the upper end of the price band, the IPO is likely to fetch Rs 570 crore.

Innova Captab Limited is 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. Its business includes a contract development and manufacturing organization (“CDMO”) business providing research, product development and manufacturing services to Indian pharmaceutical companies, a domestic branded generics business and an international branded generics business. In Fiscal 2022, among Indian formulation CDMO players considered in the CRISIL Report, it recorded the third highest operating revenue, the second highest operating profit margin, the third highest net profit margin and the second highest return on capital employed. (Source: CRISIL Report, October 2023).

The Proceeds from fresh issuance worth Rs 144.40 crore will be utilised for debt payment, Rs 23.60 crore for investment in the subsidiary UML, and Rs 72 crore for funding working capital requirements. Besides, a portion will be used for general corporate purposes.

Half of the issue has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional buyers. Investors can bid for a minimum of 33 equity shares and in multiples of 33 equity shares.

For the three months ended June 30, 2023, it had 133 CDMO customers, in Fiscal 2023 and in the three months ended June 30, 2023, it manufactured a diverse generics product portfolio of over 600 products and market them under its own brands in the Indian market through a developed network of approximately 5,000 distributors and stockists and over 150,000 retail pharmacies and in the three months ended June 30, 2023, it exported branded generic products to 16 countries. It has a dedicated research and development (“R&D”) laboratory and pilot equipment located at its manufacturing facility in Baddi, Himachal Pradesh, which is recognized by Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India (“DSIR”). On a restated consolidated basis, the number of CDMO products it sold was 2,467 in Fiscal 2023 up 131.43% from 1,066 in Fiscal 2021.

As per the Restated Consolidated Financial Information The Company’s revenue from operations grew 15.72% to Rs 9,263.80 million for Fiscal 2023 from Rs 8,005.26 million for Fiscal 2022, primarily due to increase in revenue from sale of goods and services in India and outside India and profit grew 6.26% to Rs 679.54 million for Fiscal 2023 from Rs 639.53 million for Fiscal 2022.

For the three months ended June 30, 2023, as per its Restated Consolidated Financial Information revenue from operations stood at Rs 2,332.43 million and profit for the three months ended June 30, 2023 stood at  Rs 175.93 million.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.

ICICI Securities Limited, and JM Financial Limited are the book running lead managers (BRLM) and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE. For the purposes of the Offer, NSE is the Designated Stock Exchange.Ends

RHP: https://www.icicisecurities.com/Upload/ArticleAttachments/Innova%20Captab%20Limited%20-%20RHP.pdf