The Initial Public Offering of Innova Captab Limited was subscribed 3.54 times on the second day of bidding.
The issue received bids of 3,21,75,693 shares against the offered 90,78,010 equity shares, at a price band of ₹426-448, according to the data available on the stock exchanges.
Retail Portion was the most subscribed at 5.02 times, Non-Institutional Investors Portion was subscribed 3.28 times, whereas Qualified Institutional Buyer Portion was subscribed 1.09 times. The issue kicked off for subscription on Thursday, December 21, 2023 and will close on Tuesday, December 26, 2023.
A day prior to the opening of the issue, Innova Captab Ltd had raised Rs 171 crores from anchor investors. Foreign and Domestic Institutions who participated in the anchor wereAshoka WhiteOak Emerging Markets Trust PLC, Integrated Core Strategies (Asia) Pte. Ltd., Morgan Stanley Asia (Singapore) Pte. – ODI, Copthall Mauritius Investment Ltd – ODI, and Ashoka WhiteOak ICAV Ashoka WhiteOakEmerging Markets Equity Fund Class C. Kotak Mahindra Mutual Fund, 360 One Special Opportunities Fund, Canara Rebeco Mutual Fund, ITPL-Invesco India Midcap Fund, Bandhan Emerging Business Fund, and Edelweiss Mutual Fund, Aditya Birla SunLife Insurance Company, SBI Life Insurance Co. Ltd and Winro Commercial (India) Ltd.
Leading brokerages like Reliance Securities, MarwadiFinancial Services, Ventura Capital, Choice Brokering, AJCONGLOBAL, SBI Cap Securities have given a “SUBSCRIBE” rating to the issue, highlighting the company’s expansion for the next 2 years envisaged increase in demand and leveraging the customer relationships for domestic branded generics; international generics growth in Sharon Bio Medicine and taxation benefits from the new plant in Jammu will boost earnings over the next few years. The management has indicated an asset turn of around 4-5x, however ramp-up would be gradual. Considering the medium-term growth levers and favourable demanded valuation.
ICICI Securities Limited and JM Financial Limited are the book running lead managers and KFin Technologies Limited is the registrar to the offer.
Company Information
Innova Captab is an integrated pharmaceutical company in India with a presence across the pharmaceuticals value chain including research and development, manufacturing, drug distribution and marketing and exports. Its business includes CDMO business providing research, product development and manufacturing services to Indian pharmaceutical companies, domestic branded generics business and an international branded generics business. In Fiscal 2022, among Indian formulation CDMO players considered in the CRISIL Report, it recorded the third highest operating revenue, the second highest operating profit margin, the third highest net profit margin and the second highest return on capital employed.
For the three months ended June 30, 2023, it had 133 CDMO customers, manufactured a diverse generics product portfolio of over 600 products and market them under our own brands in the Indian market through a developed network of approximately 5,000 distributors and stockists and over 150,000 retail pharmacies and exported branded generic products to 16 countries. It has a dedicated R&D laboratory and pilot equipment in Baddi, Himachal Pradesh, recognized by Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India (“DSIR”). On a restated consolidated basis, it sold 2,467 CDMO products in Fiscal 2023 up 131.43% from 1,066 in Fiscal 2021.
The table below shows subscription data for all the categories of investors:
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INNOVA CAPTAB LIMITED Last updated on |
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|
Sr.No. |
Category |
No.of shares offered / reserved |
No. of shares bid for |
No. of times of total meant for the category |
|
1 |
Qualified Institutional Buyers (QIBs) |
25,31,962 |
27,57,282 |
1.09 |
|
1(a) |
Foreign Institutional Investors (FIIs) |
– |
11,12,265 |
– |
|
1(b) |
Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) |
– |
924 |
– |
|
1(c) |
Mutual Funds |
– |
462 |
– |
|
1(D) |
Others |
– |
16,43,631 |
– |
|
2 |
Non Institutional Investors(NIIS) |
19,63,815 |
64,31,997 |
3.28 |
|
2.1 |
Non Institutional Investors(Bid amount of more than Ten Lakh Rupees) |
6,54,605 |
28,48,824 |
4.35 |
|
2.1(a) |
Corporates |
– |
1,45,959 |
– |
|
2.1(b) |
Individuals (Other than RIIs) |
– |
24,30,780 |
– |
|
2.1(c) |
Others |
– |
2,72,085 |
– |
|
2.2 |
Non Institutional Investors(Bid amount of more than Two Lakh Rupees and upto 10 lakh rupees) |
13,09,210 |
35,83,173 |
2.74 |
|
2.2(a) |
Corporates |
– |
21,384 |
– |
|
2.2(b) |
Individuals (Other than RIIs) |
– |
31,19,820 |
– |
|
2.2(c) |
Others |
– |
4,41,969 |
– |
|
3 |
Retail Individual Investors (RIIs) |
45,82,233 |
2,29,86,414 |
5.02 |
|
3(a) |
Cut Off |
– |
2,04,40,002 |
– |
|
3(b) |
Price Bids |
– |
25,46,412 |
– |
|
4 |
Employee Reserved |
– |
– |
– |
|
4(a) |
Employee (Cut off) |
– |
– |
– |
|
4(b) |
Employee (Price) |
– |
– |
– |
|
5 |
Reservation PortionShareholder |
– |
– |
– |
|
5(a) |
RPS (Cut off) |
– |
– |
– |
|
5(b) |
RPS (Price) |
– |
– |
– |
|
|
Total |
90,78,010 |
3,21,75,693 |
3.54 |
