Did you always want to invest in the pharmaceutical sector in India? If yes, you should be aware that the third largest CDMO in India, Innova Captab Limited has recently filed its Draft Red Herring Prospectus with market regulator Securities and Exchange Board of India (SEBI).
Innova Captab is an end-to-end pharmaceutical company involved in everything from R&D and formulation to manufacturing and exports. As per the latest reports, SEBI has provided a green signal to the Haryana-based pharma business to go ahead with its IPO.
If you’re interested in investing in Innova Captab Limited IPO, go through its details in this blog. It will help you make investment-related decisions in an informed way.
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About the Company – Innova Captab Limited
Innova Captab Limited is an integrated pharmaceutical company based in India. It has its presence in the entire pharmaceutical value chain from research and development, drug distribution, and manufacturing to marketing and exports.
Innova Captab Limited, going by its financial performance in FY2019 to FY2021, is the third-largest Contract Development and Manufacturing Organisation (CDMO). It exports its generic products to around 17 countries across the world. The top 14 Indian pharma companies are its customers.
Innova Captab has a well-equipped R&D laboratory along with pilot equipment in their manufacturing facility in Baddi, Himachal Pradesh. This facility is recognised by the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India. Furthermore, it has two state-of-the-art manufacturing facilities that are WHO-GMP and EU-GMP certified.
The company strives to be a responsible entity aspiring to adhere to Environmental, Social and Governance (ESG) compliance requirements. It ensures that the business is conducted ethically and seeks to maintain quality and patient safety.
Innova Captab Limited IPO Objectives and Details
Innova Captab has recently filed its Draft Red Herring Prospectus to launch an initial public offering comprising a fresh issue of up to Rs. 400 crore. The Offer for Sale (OFS) of this company’s IPO comprises up to 9.60 million shares by promoters and shareholders.
According to the DRHP filed by Innova Captab, the OFS contains 3.20 million shares by each of the promoters Manoj Kumar Lohariwala, Gian Parrkash Aggarwal and Vinay Kumar Lohariwala.
Most proceeds from this IPO, up to Rs. 180.5 crore, will be used to repay the company’s existing debt. Around Rs. 29.5 crore will be used to service the debt of UML, an arm of Innova Captab while Rs. 90 crore of the funds raised through this IPO will be used to fund working capital requirements.
Strengths of Innova Captab Limited
Check the strengths of Innova Captab Ltd. below:
- The company boasts of highly efficient operations, a good supply chain and world-class manufacturing facilities.
- Innova Captab Limited is one of the leading Contract Development and Manufacturing Organisations (CDMO) in the pharmaceutical formulations market in India.
- Since its inception in 2006, the company has succeeded in establishing good relationships with its marquee CDMO customers.
- Its business of international and domestic exports is growing rapidly.
- The company has a strong research and development team and successfully handles a complicated product portfolio. As a result, it has been very successful in attracting and retaining high-value customers over the years.
- Innova Captab Limited has delivered a consistent financial performance. The fact that it has an experienced management and promoter team is an added advantage.
Risks Involved
While it’s important to take into account the strengths of a company, you must check into account the risks involved as well:
- The business of Innova Captab Limited relies heavily on its manufacturing facilities. There are massive risks related to its vital manufacturing arm such as failure or breakdown of equipment, natural disasters, bad weather conditions and industrial accidents.
- The company depends on a limited number of CDMO customers which includes leading Indian pharma companies. If the company is unable to maintain its relationships with these customers, it will have a noticeably adverse impact on its overall business, financial condition and results of operation.
- The company operates in a highly competitive market to offer outsourced pharmaceutical manufacturing services, CDMO services or products, especially for formulations to pharma companies in India and abroad.
Conclusion
Summing up, people interested in investing in Innova Captab Limited IPO should go through the details mentioned above to make an informed decision.
Knowing its strengths along with the risks involved with putting your money in this pharmaceutical company’s IPO, will help you understand whether the investment is well-aligned with your financial requirements or not.
Innova Captab Limited IPO FAQs
Equity shares aggregating up to Rs. 4,000 million comprise the fresh issue of Innova Captab’s IPO.
9,600,000 equity shares is the size of the Offer for Sale.
Vinay Kumar Lahoriwala and Manoj Kumar Lahoriwala are the promoters of Innova Captab’s IPO.
ICICI Securities Limited and JM Financial Limited are the Book-Running Lead Managers appointed for Innova Captab’s upcoming IPO. The contact persons are Sameer Purohit / Akhil Mohod and Prachee Dhuri respectively.
KFin Technologies Limited is the registrar of Innova Captab’s IPO. M. Murali Krishna is the contact person’s name.
