Pharmaceutical company Innova Captab opened its initial public offering (IPO) for subscription on Friday. The issue will be open for subscription till December 26.
The company has fixed a price band of ₹426-448 per share for its IPO worth ₹570 crore. The IPO comprises equity shares worth up to ₹320 crore and an offer-for-sale (OFS) of up to 55.80 lakh equity shares by promoters and selling shareholders.
An offer-for-sale is a method in which the promoters in public companies can sell their shares and reduce their holdings in a transparent manner through the bidding platform for the exchange.
Those selling shares in this offer-for-sale include Vinay Kumar Lohariwala, Manoj Kumar Lohariwala and Gian Parkash Aggarwal. At the upper end of the price band, the IPO is likely to fetch ₹570 crore.
Innova Captab IPO GMP
In the grey market, the shares of Innova Captab are trading at a premium of ₹211. The estimated listing price is said to be ₹659, 47.10 per cent more than the issue price.
How will Innova Captab utilise funds raised from IPO?
The company plans to utilise funds worth ₹144.40 crore raised from the IPO for debt payment, ₹23.60 crore for investment in the subsidiary UML, and ₹72 crore for funding working capital requirements.
Innova Captab is an integrated pharmaceutical company with a presence across the pharmaceuticals value chain, including research and development, manufacturing, drug distribution, and marketing and exports.
Innova Captab’s consolidated revenue from operations grew 15.72 per cent to ₹926.38 crore for fiscal 2023 from ₹800.53 crore in the preceding fiscal.
Its profit after tax rose 6.26 per cent to ₹67.95 crore for fiscal 2023 from ₹63.95 crore in FY2022. ICICI Securities and JM Financial are book-running lead managers for the IPO. The equity shares are proposed to be listed on BSE and NSE.