The Innova Captab IPO has received healthy response from investors across categories as participants bought 55.26 times with bids coming in for 50.16 crore equity shares against an offer size of 90.78 lakh shares, on December 26, the final day of bidding.
According to the subscription data published by exchanges, high net-worth individuals picked up 64.95 times the allotted quota and qualified institutional buyers 116.73 times the portion set aside for them. Retail investors have bought 17.15 times the reserved portion.
The Rs 570-crore public issue was subscribed 1.4 times on the first day of bidding and on the second day, the subscription was 3.54 times.
The Himachal Pradesh-based pharmaceutical finished dosage formulation manufacturing company intends to raise Rs 320 crore from the fresh issue and the remaining Rs 250 crore through an offer-for-sale (OFS). Promoters Manoj Kumar Lohariwala and Vinay Kumar Lohariwala, Gian Parkash Aggarwal and others are the selling shareholders in the OFS.
The price band for the offer, which was opened on December 21, is Rs 442-448 per share.
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Of the next fresh issue proceeds, the contract development and manufacturing organisation (CDMO) for the Indian pharmaceutical industry is going to utilise Rs 168 crore for repaying debt and spend Rs 72 crore for the working capital requirements.
The pharmaceutical company has raised Rs 171 crore from several anchor investors on December 20, including Morgan Stanley, Copthall Mauritius Investment, ICICI Prudential Mutual Fund, Kotak Mahindra Trustee, Ashoka Whiteoak Emerging Markets Trust, SBI Life Insurance Company, Aditya Birla Sun Life Insurance Company, Invesco India, and Integrated Core Strategies.
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Innova Captab IPO shares were available at around 30 percent premium over the upper price band, in the grey market, analysts on anonymity said. The grey market is an unofficial platform for trading in IPO shares till the listing.
In the CDMO business, which contributed the maximum to the topline, it supplies products to several key customers, including Cipla, Glenmark Pharmaceuticals, Wockhardt, Emcure Pharmaceuticals, Lupin, Intas Pharmaceuticals, Eris Healthcare, Indoco Remedies, JB Chemicals and Pharmaceuticals, Zuventus Healthcare, Ajanta Pharma, and Mankind Pharma.
The CDMO business recorded a CAGR of 35.36 percent during FY21-23, to Rs 679.6 crore, while the topline CAGR was 50.2 percent in the same period to Rs 926.4 crore.
Innova Captab is going to finalise the basis of allotment of IPO shares by December 27 and the equity shares will be credited to the demat accounts of successful investors by December 28.
The trading in its equity shares will commence on the BSE and NSE from December 29.
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