Innova Captab IPO subscribed 11.5x times on Day 3 so far; GMP falls further

The initial public offering (IPO) of Innova Captab continued to witness a decent buying interest  from investors on the Day 3 of the bidding process. The issue was subscribed 1.41 times on Day 1 and ended the  Day 2 of bidding with 3.65 times subscription.

Innova Captab is raising a total of Rs 570 crore through its initial stake sale. The IPO price band has been fixed at Rs 426-448 per share. Investors can bid for a minimum lot size of 33 equity shares and its multiples thereof. In total, the pharmaceutical company is raising Rs 570 crore via fresh issue, while the promoters and other shareholders are selling 55,80,357 equity shares via OFS.

By 1.15 pm, investors made bids for 10,41,26,352 equity shares, or 11.47 times on Day 3, compared to the 90,78,010 equity shares on the block. The three-day bidding for the issue, which had kicked off on Thursday, December 21, will conclude today.

The portion reserved for non-institutional investors (NIIs) was booked 24.43 times, while the retail portion was subscribed 11.43 times. The portion set aside for qualified institutional bidders (QIBs) was booked 1.48 times.

Incorporated in January 2005, Innova Captab is a pharmaceutical company operating in three business segments. It provides contract development and manufacturing services to Indian pharmaceutical companies. It also has a domestic business dealing in branded generics. Furthermore, the company has an international business that deals in branded generics.

The company's product portfolio includes tablets, capsules, dry syrups, dry powder injections, ointments and liquid medicines. In the financial year 2023 and the three months ended June 30, 2023, the company produced and sold more than 600 different types of generics. Innova Captab exported its branded generic products to 20 and 16 countries during the period.

Innova Captab's premium in the grey market has plunged sharply in two digits, to around Rs 90 apiece, still signalling an upside of 20 per cent. The premium in the unofficial market was about Rs 210-215 ahead of the bidding process.

ICICI Securities and JM Financial are the book running lead managers of the Innova Captab IPO, while Kfin Technologies is the registrar for the issue. Innova Captab has mobilised Rs 171 crore from anchor investors by allocating 38,16,963 equity shares at a price of Rs 448 per share.

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