Pharma firms Innova Captab, Blue Jet Healthcare get Sebi nod to go public

IPO

Pharmaceutical companies Innova Captab and Blue Jet Healthcare have received approval from the capital markets regulator to go ahead with their IPO plans.

The Securities and Exchange Board of India (Sebi) issued an observation letter to Innova Captab on January 11 and Blue Jet Healthcare received the same letter on January 9, as per updates available with the regulator on January 13.

According to Sebi, the issuance of observation letter indicates that a company can go ahead with its plans to go public.

The Innova Captab public issue comprises a fresh issue of Rs 400 crore and an offer-for-sale of 96 lakh equity shares by promoters.

Promoters Manoj Kumar Lohariwala and Vinay Kumar Lohariwala, and investor Gian Parkash Aggarwal plan to sell 32 lakh shares each through an offer for sale. Around 69.75 percent shareholding is now held by promoters and the rest is with Gian Parkash Aggarwal, the public shareholder.

The company has three business divisions - one is CDMO (contract development and manufacturing organisation) segment, second is domestic branded generics business, and the last is international branded generics business.

The fresh issue proceeds will be utilised by the company for repaying debts and working capital requirements, besides general corporate purposes.

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

Another CDMO business operator Blue Jet Healthcare is also now ready to launch its public issue that comprises only an offer for sale of 2.16 crore equity shares by promoters Akshay Bansarilal Arora, and Shiven Akshay Arora. It is 100 percent owned by promoters.

The specialty pharmaceutical and healthcare ingredient and intermediate company manufactures a range of products in-house, including the key starting intermediate and advanced intermediates, which help them to control production process for consistent quality and cost effectiveness.

Its operations are primarily organised in three product categories - contrast media intermediates, high intensity sweeteners, and pharma intermediates and active pharmaceutical ingredients (APIs). In the past three financial years, it serviced more than 350 customers in 35 countries.

Kotak Mahindra Capital Company, ICICI Securities, and JP Morgan India are the book running lead managers to the offer.