Innova Captab Raises Rs 171 Crore from Anchor Investors Ahead of IPO

21 Dec 2023 , 09:41 AM

Innova Captab, a pharmaceutical company based in Himachal Pradesh, has successfully raised Rs 171 crore from anchor investors on December 20, a day prior to the opening of its initial public offering (IPO). The IPO subscription period is scheduled to run from December 21 to December 26.

Prominent institutional investors, including Morgan Stanley, Copthall Mauritius Investment, ICICI Prudential Mutual Fund, Kotak Mahindra Trustee, Ashoka Whiteoak Emerging Markets Trust, SBI Life Insurance Company, Bandhan Mutual Fund, Canara Robeco Mutual Fund, Aditya Birla Sun Life Insurance Company, Invesco India, and Integrated Core Strategies, participated in the anchor book.

Innova Captab, engaged in pharmaceutical finished dosage formulation manufacturing, has allocated 38,16,963 equity shares to anchor investors at a price of Rs 448 per share, as finalized in consultation with merchant bankers.

The company aims to raise Rs 570 crore through its IPO, comprising a fresh issue of shares worth Rs 320 crore and an offer-for-sale (OFS) of Rs 250 crore by existing shareholders. The promoters, Manoj Kumar Lohariwala and Vinay Kumar Lohariwala, along with non-promoter Gian Parkash Aggarwal, will be the selling shareholders in the OFS.

Innova Captab has set the price band for the IPO at Rs 426-448 per share. Preceding the IPO, the company raised Rs 30 crore through a pre-IPO placement at Rs 418 per share and Rs 50 crore via cumulative compulsorily convertible preference (CCPS) shares at Rs 354 per CCPS on December 16.

With two facilities in Baddi (Himachal Pradesh), the company plans to utilize the net fresh proceeds to repay debts amounting to Rs 168 crore and allocate Rs 72 crore for working capital requirements. As of October 2023, secured borrowings stood at Rs 457.7 crore, and subsidiary Univentis Medicare’s (UML) borrowings amounted to Rs 175 crore.

ICICI Securities and JM Financial are serving as the merchant bankers for the IPO.