Himachal Pradesh-based pharmaceutical contract research and manufacturing organization (CDMO) Innova Captab is all set to make a grand entry into the public markets with a Rs 570 crore initial public offering (IPO) this week. The issue, priced at Rs 426-448 per share, opens on December 21st and closes on December 26th. Here’s a breakdown of the key details for investors:
IPO Structure:
- Combination of fresh issue and Offer for Sale (OFS): Innova Captab will raise Rs 320 crore through fresh issue and another Rs 250 crore through OFS, where promoters and existing shareholders will offload equity shares.
- Pre-IPO placements: The company has already secured Rs 80 crore through pre-IPO placements, showcasing strong investor confidence.
What Innova Captab Does:
- Leading CDMO player: Innova Captab provides CDMO services to pharmaceutical companies, handling both development and manufacturing processes. This differentiated offering positions them competitively in the growing CDMO market.
- Generics presence: They also have a generics business, further diversifying their revenue streams.
Investor Allocation and Bidding:
- Retail participation encouraged: 35% of the IPO is reserved for retail investors, with a minimum bid size of 33 shares.
- Institutional interest anticipated: 50% allocation for qualified institutional buyers and 15% for high net worth individuals ensures broader market participation.
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Dates & Price:
- The IPO opens on December 21st and closes on December 26th, 2023.
- The price band is set at Rs 426-448 per share.
Offer & Objectives:
- The healthcare company aims to raise Rs 570 crore through a combination of fresh issuances (Rs 320 crore) and an offer for sale (Rs 250 crore).
- Promoters and key shareholders will offload shares in the OFS.
- Fresh proceeds will be utilized for debt repayment, working capital needs, and general corporate purposes.
Investor Details:
- Minimum bid size is 33 shares, translating to a minimum investment of Rs 14,058 (at lower price band).
- ICICI Securities and JM Financial are the lead book runners, while Kfin Technologies is the registrar.
Listing & Risks:
- The stock is expected to list on BSE and NSE on December 29th, 2023.
- Key risk factors include dependence on Chinese raw materials, potential disruption in supply chains, and reliance on third-party logistics providers.
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(Disclaimer: This news article is for informational purposes only and should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions.)