Drugmaker Innova Captab Ltd has filed a draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The IPO consists of a fresh issue of up to Rs 400 crore and an offer for sale of up to 9.60 million shares by shareholders and promoters. The OFS comprises up to 3.20 million shares each by Manoj Kumar Lohariwala, Vinay Kumar Lohariwala and Gian Parkash Aggarwal, the DRHP says.
An amount of Rs 180.50 crore from the proceeds of the fresh issue will be used to repay debt, while another Rs 29.50 crore will service the debt of the company’s arm UML. A sum of Rs 90 crore will be used for meeting working capital requirements.
As of May 2022, its total secured borrowings were at Rs 215.52 crore on consolidated basis.
ICICI Securities and JM Financial are the lead managers to the issue.
The firm is an integrated pharmaceutical company, with a presence across the value chain, including research and development, manufacturing, drug distribution and marketing and export.
The company also provides manufacturing services to Indian pharmaceutical companies and has domestic as well as international branded generics businesses.
The firm has two manufacturing facilities in Baddi, Himachal Pradesh, which produce tablets, capsules, dry syrups, dry powder injections, ointments and liquid orals. It is ranked third among its peers in terms of tablet and capsule manufacturing capacity in India.
It revenue for FY21 was Rs 410.66 crore, up from Rs 373.32 crore in the previous year. The year's net profit was Rs 34.50 crore against Rs 27.89 crore in FY20. For the nine months ended December 2021, revenue was at Rs 584.12 crore and net profit at Rs 50.88 crore."The revenue and net profit for the company is on an upward trajectory for the given periods but of course, it has to be seen in conjunction with the valuations demanded during the IPO. Investors should remember that not all good businesses are necessarily good investments! More details have to be seen before concluding," said Aditya Kondawar, Partner, Vice President, Complete Circle Capital