Innova Captab IPO subscribed 1.4 times, retail portion booked 2 times on day 1

Innova Captab IPO

Innova Captab IPO was subscribed 1.4 times on the first day of bidding, December 21, with bids for 1.27 crore shares against an issue size of nearly 90.78 lakh shares. Retail investors bought 2.12 times, high net-worth individuals picked 96 percent and qualified institutional buyers picked 44 percent of the allotted quota.

The Rs 570 public offer which will close on December 26, comprises a fresh issue of Rs 320 crore and an offer-for-sale of Rs 250 crore worth of shares. Promoters Manoj Kumar Lohariwala and his brother, Vinay Kumar Lohariwal will sell 19.53 lakh equity shares each in the OFS.  Gian Parkash Aggarwal, a public shareholder, will sell 16.74 lakh shares.

The price band for the issue has been fixed at Rs 426-448 per share with a lot size of a minimum of 33 equity shares followed by multiples of 33.

Through the fresh proceeds, the healthcare company will repay its debt of Rs 168 crore for its two facilities in Baddi. The company will allocate Rs 72 crore for its working capital requirements and the remainder will be used for general corporate purposes.

The pharma company has recorded revenue growth at a CAGR of 50.2 percent during FY21-FY23, to Rs 926.4 crore in the year ended March FY23, while the CDMO business grew at a CAGR of 35.36 percent during the same period to Rs 679.6 crore in FY23.

ICICI Securities and JM Financial are acting as the merchant bankers to the issue, while KFin Technologies is the registrar of the offer.