Innova Captab Makes Subdued Market Debut with Modest Premium of 1%

29 Dec 2023 , 09:47 AM

Pharmaceutical company Innova Captab marked a subdued market entry, with its shares debuting at Rs 452.10 on NSE, reflecting a modest premium of 0.92% over the issue price of Rs 448 per share. On BSE, the stock opened at Rs 456.10, carrying a premium of 1.81%.

The public issue, amounting to Rs 570 crore, generated significant interest from investors during the subscription period of December 21-26. The response was particularly robust from qualified institutional buyers (QIBs), who oversubscribed their allotted portion by a staggering 116.73 times. High net worth individuals (HNIs) and retail investors also displayed considerable enthusiasm, subscribing 64.95 times and 17.15 times, respectively.

Innova Captab, based in Himachal Pradesh, specializes in manufacturing finished dosage formulations in the pharmaceutical sector. The company primarily caters to the contract development and manufacturing organization (CDMO) segment and has a focus on both domestic and international branded generics businesses.

Out of the net fresh issue proceeds amounting to Rs 168 crore, Innova plans to allocate funds for repaying debts of its own and its subsidiary UML. Additionally, Rs 72 crore will be earmarked for meeting working capital requirements, while the remaining proceeds will be utilized for general corporate purposes.