Innova Captab IPO: A Closer Look at the Rs 570-Crore Offering

In the world of financial investments, initial public offerings (IPOs) are always a hot topic of discussion. They offer investors a chance to become early stakeholders in a company’s growth journey. One such IPO that’s generating excitement in the market is the Rs 570-crore Innova Captab IPO, set to open on December 21st, with a price band of Rs 426-448 per share. In this blog, we’ll delve into the details of this pharmaceutical company’s IPO and what investors can expect.

Also See: Innova Captab IPO GMP

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About Innova Captab:

Innova Captab is a pharmaceutical finished dosage formulation manufacturing company based in Himachal Pradesh, India. The company has gained recognition in the healthcare industry for its contract development and manufacturing organization (CDMO) business. Beyond CDMO, Innova Captab also caters to both the domestic and international branded generics business.

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The IPO Details:

The Innova Captab IPO is a two-pronged offering. It comprises a fresh issuance of shares worth Rs 320 crore and an offer-for-sale (OFS) of Rs 250 crore by existing shareholders. The promoters of the company, Manoj Kumar Lohariwala and Vinay Kumar Lohariwala, will be selling 19.53 lakh equity shares each in the OFS. Additionally, another public shareholder, Gian Parkash Aggarwal, will sell 16.74 lakh equity shares in the OFS.

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Pre-IPO Placements:

Before the IPO, Innova Captab made strategic moves to bolster its financial position. The company raised Rs 80 crore in a pre-IPO placement, including Rs 30 crore from issuing shares at Rs 448 per share and Rs 50 crore via cumulative compulsorily convertible preference (CCPS) shares at Rs 354 per CCPS. The CCPS shares were converted into equity shares on December 1, 2023.

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Utilization of Funds:

The company plans to utilize the net fresh proceeds from the IPO for various purposes. A significant portion will go towards repaying debts, amounting to Rs 168 crore. Additionally, Rs 72 crore will be allocated for working capital requirements, while the remaining funds will be reserved for general corporate purposes.

Also Read: When Can a Company Go for IPO in India

IPO Reservation Categories:

The IPO has specific reservation categories to ensure equitable participation. Half of the public issue size has been reserved for qualified institutional buyers (QIBs), 15 percent for high-net-worth individuals (HNIs), and the remaining 35 percent for retail investors.

Investor Requirements:

Retail investors can bid for a minimum of 33 equity shares, with multiples of 33 shares thereafter. The minimum investment for retail investors is Rs 14,784, and the maximum is capped at Rs 2 lakh in any IPO.

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Book Running Lead Managers:

The Innova Captab IPO is managed by ICICI Securities and JM Financial, serving as the book running lead managers. Their role is crucial in ensuring a smooth and successful IPO process.

Conclusion:

The Innova Captab IPO presents an exciting opportunity for investors to be part of a pharmaceutical company with a strong presence in CDMO and branded generics businesses. With the IPO opening on December 21st and a price band of Rs 426-448 per share, it’s an offering worth keeping an eye on. As always, potential investors should conduct thorough research and consider their financial goals and risk tolerance before participating in any IPO.

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