Innova Captab Limited is launching its IPO. The opens for subscription on December 21, 2023 and will close on December 26, 2023.
What does Innova Captab Limited do?
Innova Captab Limited is an integrated pharmaceutical firm in India, involved in various aspects of the pharmaceutical value chain, such as research and development (R&D), manufacturing, distribution, marketing, and exports. Its operations encompass a Contract Development and Manufacturing Organization (CDMO) catering to Indian pharmaceutical firms, a domestic market for branded generics, and an international market for branded generics.
The company’s internal R&D is its cornerstone; it helps to build its branded generic portfolio and draw in CDMO clients. They intend to open a new R&D center in addition to their dedicated facilities. Their CDMO services, which use more recent technologies like nanotechnology, cover a range of generic pharmaceuticals in different therapeutic areas and dosage formats.
According to CRISIL Research, they have one of India’s best capacities for producing tablets and capsules, and its R&D laboratory is well-equipped. They also have production facilities in Baddi, Himachal Pradesh.
What is the issue size of Innova Captab Limited IPO?
The entire public offer of the company is a fresh issue of equity shares worth Rs 320.00 crore and an offer for sale of up to 5,580,357 Equity Shares from the existing shareholders.
Financial information and other valuation metrics (in crores)
| Particulars | As for the three months ended 30 June 2023 | As for the year ended 31 March 2023 | As for the year ended 31 March 2022 |
|---|---|---|---|
| Total Assets | 276.81 | 0.07 | 0.02 |
| Total revenue | 0.05 | 0.78 | 0.00 |
| Net Cash inflow / (outflow) | 0.04 | 0.05 | 0.02 |
| Profit for the period/year | 17.59 | 67.95 | 63.95 |
| EBITDA | 32.42 | 122.84 | 98.90 |
Risk factors to consider:
The company operates in a fiercely competitive market, offering outsourced pharmaceutical manufacturing (CDMO) services and formulations to Indian and global pharmaceutical firms.
The reliance on China, China SEZ, and Hong Kong for raw material supplies poses significant vulnerability to political, economic, and social fluctuations within the greater China region, potentially impacting operational stability and supply chain resilience.
The company’s capital-intensive nature makes it reliant on adequate cash flows and borrowing capacity to sustain working capital needs. Insufficient cash flows or borrowing constraints could significantly and negatively impact its business.
The company, its promoters, subsidiaries, and some directors face pending litigation, which could result in significant liabilities or penalties, potentially impacting the business.
The recent acquisition of Sharon poses uncertainty regarding its impact on the business & operations. Sharon is also currently suspended from trading in the Stock Exchanges and is yet to receive approval to delist its shares from the Stock Exchanges as part of the corporate insolvency resolution plan.
Schedule of Innova Captab Limited IPO
| Issue Period | 21st December to 26th December 2023 |
|---|---|
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | December 27, 2023 |
| Initiation of Refunds | December 28, 2023 |
| Credit of Shares | December 28, 2023 |
| Date of Listing | December 29, 2023 |
| Mandate end date | January 10, 2024 |
| Anchor Investors Lock-In End Date (50% of the investment) | January 26, 2024 |
| Anchor Investors Lock-In End Date (Remaining investment) | March 26, 2024 |
How to apply to the Innova Captab Limited IPO?
You can apply for the Innova Captab Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status for Innova Captab Limited IPO?
You can check the allotment status for the Innova Captab Limited IPO on the website of the Registrar and Transfer agent. Alternatively, you can also check the allotment status on the NSE website.