Pharmaceutical Firm Innova Captab Sets Price Band for Rs 570-Crore IPO at Rs 426-448

16 Dec 2023 , 06:02 PM

Innova Captab, a pharmaceutical finished dosage formulation manufacturer based in Himachal Pradesh, has announced a price band of Rs 426-448 per share for its upcoming Rs 570-crore public issue. The IPO is scheduled to open for subscription from December 21 to 26, with the anchor book set to launch on December 20.

The offering includes a fresh issuance of shares worth Rs 320 crore and an offer-for-sale (OFS) of Rs 250 crore by existing shareholders. Promoters Manoj Kumar Lohariwala and Vinay Kumar Lohariwala will each sell 19.53 lakh equity shares in the OFS, along with public shareholder Gian Parkash Aggarwal, who will sell 16.74 lakh equity shares.

In a pre-IPO placement, Innova Captab has already raised Rs 80 crore, with Rs 30 crore through equity shares and Rs 50 crore via cumulative compulsorily convertible preference (CCPS) shares. The total fund raised in the pre-IPO placement was at an upper price band of Rs 448 per share, as set by the company on December 16. The CCPS were converted into 14,12,430 equity shares on December 1, 2023.

Originally, the fresh issue size was Rs 400 crore, but with the additional fund raising, the revised size is now up to Rs 320 crore. The company, which operates two facilities in Baddi (Himachal Pradesh), plans to utilize the net fresh proceeds to repay debts amounting to Rs 168 crore, allocate Rs 72 crore for working capital requirements, and retain the remaining funds for general corporate purposes.

As of October 2023, the company’s secured borrowings stood at Rs 457.7 crore, with subsidiary Univentis Medicare’s borrowings at Rs 175 crore. The IPO allocation includes 50% for qualified institutional buyers, 15% for high net worth individuals, and 35% for retail investors. Retail investors can bid for a minimum of 33 equity shares, with a minimum investment of Rs 14,784, and a maximum investment capped at Rs 1,92,192 for 429 shares.

In addition to its contract development and manufacturing organization (CDMO) business, Innova Captab serves both the domestic and international branded generics markets. ICICI Securities and JM Financial are the book running lead managers for the IPO.