The capital markets regulator, the Securities, and Exchange Board of India (SEBI), has issued its final observation to Innova Captab, 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. SEBI has given this observation in order for Innova Captab to raise money through an initial public offering (IPO).
On July 7 of last year, the business submitted preliminary IPO documents to Sebi.
An offer-for-sale (OFS) of up to 9,600,000 equity shares by the promoter and selling shareholders, which includes up to 3,200,000 by Manoj Kumar Lohariwala, up to 3,200,000 by Vinay Kumar Lohariwala (Promoter Selling Shareholders), and up to 3,200,000 by Gian Parkash Aggarwal, is part of the issue with a face value of Rs 10 per equity share. The fresh issue of equity shares with a value of up to Rs 400 (Other Selling Shareholders).
The business may explore a private placement, preferential offering of equity shares, or any other mechanism aggregating up to Rs 80 crore in conjunction with the lead bankers to the issue. If such a placement is successful, the size of the new issue will be decreased.
The proceeds from the new offering, worth Rs. 180.50 crores, would be used for working capital requirements, general corporate purposes, and repayment and/or prepayment of certain existing debts, in part or in full. Additionally, Rs. 29.50 crores will be invested in the subsidiary UML.
The Haryana-based pharmaceutical company had the second-largest formulation contract development and manufacturing organisation (CDMO) in India in fiscal 2021 based on operational income, and from fiscal 2019 to fiscal 2021, it saw the third-fastest growth in formulation CDMO size. Its operations include a contract development and production firm that offers manufacturing services to Indian pharmaceutical firms, a local branded generics company, and an overseas branded generics company.
The book-running lead managers for the offer are ICICI Securities Limited and JM Financial Limited, while KFin Technologies Limited is the registrar. It is proposed that the equity shares list on both the BSE and NSE.
