Innova Captab receives Sebi approval to raise funds via IPO


Market regulator Sebi has approved the initial public offering (IPO) of Innova Captab. The company filed for its public offer in June last year. The IPO is a mixture of fresh issue and an offer for sale. The equity shares proposed in the IPO will be listed on BSE and NSE. Innova Captab is an integrated pharmaceutical company in India.

The company received its observation letter from Sebi on January 11, 2023. ICICI Securities was the co-ordinating lead manager.

As per the draft prospectus, the company’s IPO includes a fresh issue of 400 crore and offer for sale of up to 96 lakh equity shares. Promoters Manoj Kumar Lohariwala and Vinay Kumar Lohariwala along with investor Gian Parkash Aggarwal will participate in the OFS.

The company plans to utilise net proceeds from the issue for repayment of certain outstanding loans, investment in subsidiary UML for repaying debt, funding working capital requirements, and general corporate purposes. The proceeds of OFS will be used by selling shareholders.

ICICI Securities and JM Financial are acting as the book running lead managers for the IPO. KFin Technologies is the registrar of the offer.

Innova Captab’s presence is across the pharmaceuticals value chain including research and development, manufacturing, drug distribution & marketing, and exports.

The company’s business includes (i) a contract development and manufacturing organization (“CDMO”) business providing manufacturing services to Indian pharmaceutical companies, (ii) a domestic branded generics business, and (iii) an international branded generics business.

In CDMO business, some of its customers are Cipla, Glenmark Pharma, Wockhardt, Corona Remedies, Emcure Pharmaceuticals, Lupin, Ajanta Pharma, J. B. Chemicals and Pharmaceuticals, and Eris Healthcare among others.

The company’s customer base includes 14 of the top 15 Indian pharmaceutical companies. While the company has a diverse generics product portfolio of over 400 products and market them under its own brands in the Indian market via a developed network of approximately 3,400 distributors and stockists and over 96,000 retail pharmacies.

In its draft prospectus, Innova said that they have positioned the company to benefit from the growth in the CDMO market by developing strong R&D and manufacturing operations for its customers to support their domestic sales and exports to certain markets.

As of December 31, 2021, the company’s profit was at 6.3 crore and net worth at 195.49 crore. In FY21, the company’s PAT and net worth were at 5.8 crore and 131.50 crore respectively.

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