Himachal Pradesh Pharma Giant Innova Captab Gears Up for Rs 570 Crore IPO: Key Takeaways for Investors

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.

Also Read: Varun Beverages Takes a Big Gulp: Deep Dive into the South African Acquisition

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.

Also Read: Sachin Tendulkar-Backed Azad Engineering Takes Flight with Rs 740 Crore IPO

(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.)

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