360 One Special Opportunities Fund picks Rs 30-crore worth of shares in IPO-bound Innova Captab

Innova Captab raises Rs 80 crore in pre-IPO placement

Innova Captab has raised Rs 30 crore through a pre-IPO placement from 360 one Special Opportunities Fund, which bought more than 6.69 lakh shares in the pharma firm, the second such fundraise in four months.

The initial public offering is likely to open for subscription later this month or January.

"The company, in consultation with the merchant bankers, has undertaken the pre-IPO placement of 6,69,642 equity shares at an issue price of Rs 448 per share, for an amount of Rs 30 crore, by way of a private placement," the pharmaceutical company said in a notice to investors. The shares were bought on December 3.

The board of directors as well as shareholders had on December 1 given their approval for the pre-IPO placement.

Innova Captab alloted 3,34,821 equity shares each to 360 one Special Opportunities Fund - Series 9 and 360 one Special Opportunities Fund - Series 10, at Rs 448 apiece.

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This is the second such placement by the firm in four months.

The drug company told the Securities and Exchange Board of India (SEBI) in September that it undertook pre-IPO placement of 14,12,430 compulsorily convertible preference shares (CCPSS) at Rs 354 a share, aggregating to Rs 50 crore.

With the latest round, the company has achieved its target to raise Rs 80 crore via pre-IPO placement.

In its DRHP, filed in June 2022, the company said,"....may consider a further issue through either a private placement, preferential offer or any other method of equity shares or up to such number of fully paid up compulsorily convertible preference shares which will be convertible into equity shares, for cash consideration aggregating up to Rs 80 crore, prior to filing of the Red Herring Prospectus with the ROC (pre-IPO Placement)," the company had said.

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If the pre-IPO placement is completed, the size of the fresh issue will be reduced. The pre-IPO placement would not exceed 20 percent of the size of the fresh issue, the company said.

The company has filed draft papers in June 2023 year to raise funds through IPO, comprising a fresh issue of Rs 400 crore.

Promoters Manoj Kumar Lohariwala, and Vinay Kumar Lohariwala and shareholder Gian Parkash Aggarwal will off load 96 lakh shares —32 lakh each — through the IPO.

If we consider the latest fund raise, then the issue size comes to around Rs 830.08 crore.

Innova Captab, which provides contract manufacturing services and runs generics business, is going to utilise net fresh issue proceeds to repay debt of Rs 180.5 crore, and a subsidiary’s loan of Rs 29.5 crore.

A sum of Rs 90 crore will be used to meet working capital requirements and the remaining sum will be set aside for general corporate purposes.

ICICI Securities and JM Financial are the merchant bankers to the issue.