Innova Captab is set to launch its initial public offering (IPO) with a subscription window from December 21 to December 26, 2023. The IPO aims to raise approximately ₹[.] crores, comprising a fresh issue of ₹400 crores and an offer for sale of up to 9,600,000 equity shares at ₹10 each. The retail quota is 35%, QIB is 50%, and HNI is 15%.
**Business Profile:**
Innova Captab is an integrated pharmaceutical company in India, engaged in various segments of the pharmaceutical value chain. This includes research and development, manufacturing, drug distribution, marketing, and exports. The company operates in three main areas: contract development and manufacturing organization (CDMO) services, domestic branded generics, and international branded generics.
**Financial Highlights:**
In Fiscal 2022, Innova Captab ranked among the top players in the Indian formulation CDMO space, boasting the third-highest operating revenue, second-highest operating profit margin, third-highest net profit margin, and second-highest return on capital employed. The company’s diverse portfolio encompasses over 600 products, and it has a robust distribution network of approximately 5,000 distributors and stockists, serving over 150,000 retail pharmacies.
**Manufacturing Facilities:**
Innova Captab conducts manufacturing at two facilities in Baddi, Himachal Pradesh, which are GMP-certified and compliant with WHO recommendations. The company also plans to establish a new manufacturing facility in Jammu.
**Objects of the Issue:**
The proceeds from the IPO will be utilized for:
1. Repayment/prepayment of certain outstanding loans.
2. Investment in the subsidiary, UML, for loan repayment/prepayment.
3. Funding working capital requirements.
4. General corporate purposes.
**IPO Details:**
– IPO Dates: December 21, 2023, to December 26, 2023.
– IPO Size: Approximately ₹[.] crores.
– Face Value: ₹10 per Equity Share.
– IPO Price Band: ₹[.] to ₹[.] per Share.
– Exchanges: BSE & NSE.
– Retail Quota: 35%, QIB Quota: 50%, NII Quota: 15%.
**IPO Market Lot:**
The minimum market lot for the Innova Captab IPO is [.] shares, with a corresponding application amount of ₹[.].
**IPO Allotment & Listing Dates:**
– IPO Allotment: December 27, 2023.
– IPO Listing: December 29, 2023.
**Financial Report (in Crores):**
– 2022: Revenue ₹412, Expense ₹366, PAT ₹34.50.
– 2023: Revenue ₹803, Expense ₹718, PAT ₹63.95.
– 2023: Revenue ₹936, Expense ₹844, PAT ₹67.95.
– 2024 (3M): Revenue ₹234, Expense ₹210, PAT ₹17.59.
**Valuation (FY2023):**
– Earning Per Share (EPS): ₹14.16 per Equity Share.
– Price/Earning P/E Ratio: N/A.
– Return on Net Worth (RoNW): 24.58%.
– Net Asset Value (NAV): ₹57.60 per Equity Share.
**Peer Group:**
– Torrent Pharmaceuticals Limited.
– Laurus Labs Limited.
– Ajanta Pharma Limited.
– J. B. Chemicals and Pharmaceuticals Limited.
– NATCO Pharma Limited.
– Eris Lifesciences Limited.
– Indoco Remedies Limited.
– Suven Pharmaceuticals Limited.
– Windlas Biotech Limited.
**Company Promoters:**
– Manoj Kumar Lohariwala.
– Vinay Kumar Lohariwala.
**IPO Subscription and Brokerage Reviews:**
– Subscription Status and Brokerage Reviews: To be updated soon.
**Innova Captab IPO – Apply or Not?**
The decision to invest in the Innova Captab IPO will be discussed in the upcoming review, taking into account various factors such as financial performance, industry dynamics, and subscription trends.
