Innova Captab Initiates IPO Subscription, Reveals Price Band and GMP Status

Pharmaceutical firm Innova Captab has officially launched its initial public offering (IPO) for subscription, marking a significant milestone in its financial journey. The IPO subscription window is open until December 26, presenting investors with an opportunity to participate in the company's growth.

Innova Captab has set a price band of ₹426-448 per share for its IPO, valuing the offering at ₹570 crore. The IPO structure includes equity shares totaling up to ₹320 crore and an offer-for-sale (OFS) featuring up to 55.80 lakh equity shares, facilitated by promoters and selling shareholders.

The offer-for-sale mechanism allows promoters in public companies to transparently sell their shares through a bidding platform, reducing their holdings in a structured manner.

Prominent figures participating in the offer-for-sale include Vinay Kumar Lohariwala, Manoj Kumar Lohariwala, and Gian Parkash Aggarwal. At the upper limit of the price band, the IPO is anticipated to generate ₹570 crore.

Innova Captab IPO GMP: Premium Trading in the Grey Market

In the grey market, Innova Captab's shares are currently trading at a premium of ₹211. Market analysts suggest an estimated listing price of ₹659, reflecting a substantial 47.10% increase over the issue price.

Utilization of IPO Proceeds by Innova Captab:

Innova Captab has outlined a strategic plan for the utilization of funds raised through the IPO. The company intends to allocate ₹144.40 crore for debt payment, ₹23.60 crore for investments in the subsidiary UML, and ₹72 crore for fulfilling working capital requirements.

About Innova Captab:

As an integrated pharmaceutical company, Innova Captab boasts a comprehensive presence across the pharmaceutical value chain, encompassing research and development, manufacturing, drug distribution, and marketing and exports.

For the fiscal year 2023, the company reported a noteworthy 15.72% growth in consolidated revenue from operations, reaching ₹926.38 crore compared to ₹800.53 crore in the previous fiscal. The profit after tax also saw a positive uptick, rising by 6.26% to ₹67.95 crore in fiscal 2023 from ₹63.95 crore in FY2022.

ICICI Securities and JM Financial serve as the book-running lead managers for the IPO, and the equity shares are proposed to be listed on both BSE and NSE, adding an extra layer of market accessibility for potential investors.