Innova Captab has received the nod from the capital markets regulator Securities and Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO). It had filed preliminary IPO papers (DRHP) with Sebi on July 2022.
Innova Captab is an integrated pharmaceutical company in India with a presence across the pharmaceuticals value chain including research and development, manufacturing, drug distribution and marketing and exports.
Innova Captab's primary offering is said to include a fresh issue of up to Rs 400 crore and an offer-for-sale (OFS) up to 9,600,000 equity shares by promoter and selling shareholders. Promoter Manoj Kumar Lohariwala and Vinay Kumar Lohariwala and other shareholders including Gian Parkash Aggarwal will sell their shares via OFS route. They will offload 32 lakh equity shares each.
The company, in consultation with the lead bankers to the issue may consider a private placement or preferential issue of equity shares or any other method aggregating up to Rs 80 crore. If such placement is completed, the fresh issue size will be reduced.
The net proceeds from the fresh issue will be utilized towards repayment/prepayment of certain borrowings, investment in subsidiary and general corporate purposes, said that company in its DRHP.
The company has reserved 50 per cent of the net issue for the qualified institutional bidders (QIBs), whereas non-institutional investors will get 15 per cent of the offer. Remaining 35 per cent allocation has been fixed for the retail bidders.
The Haryana based drugmaker, in terms of operating revenue, was the second largest formulation contract development and manufacturing organization (CDMO) in India in Fiscal 2021 and the third fastest growing formulation CDMO for FY19-21.
Its business includes contract development and manufacturing organization business providing manufacturing services to Indian pharmaceutical companies, domestic branded generics business and an international branded generics business.
ICICI Securities Limited and JM Financial Limited are the book running lead managers and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
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