In anticipation of its upcoming initial public offering (IPO), Mumbai-based pharmaceutical firm, Innova Captab, has disclosed a price range of ₹426 to ₹448 per share. The IPO subscription window is set to open on December 21 and will close on December 26.
At the upper end of the price spectrum, the company’s valuation stands at 34 times its earnings for the financial year 2022-23. The IPO comprises a fresh equity share issue worth up to ₹400 crore and an offer-for-sale (OFS) featuring up to 9,600,000 equity shares by the promoters and selling shareholders.
In addition, Innova Captab, in collaboration with lead bankers, may explore alternatives like private placement or preferential issue of equity shares, totaling up to ₹80 crore, which would subsequently reduce the fresh issue size.
As a comprehensive pharmaceutical entity, Innova Captab covers the entire pharmaceutical value chain, from research and development to manufacturing, distribution, marketing, and exports. The net proceeds from the IPO will be allocated for loan repayment, investment in subsidiary UML for debt repayment, working capital requirements, and general corporate needs.
In the fiscal year 2023, the company reported a revenue of ₹936 crore and a profit of ₹68 crore.
ICICI Securities and JM Financial serve as the book-running lead managers, with KFin Technologies acting as the registrar to the offer. The equity shares are intended to be listed on both BSE and NSE.
As of today, the grey market premium (GMP) for Innova Captab IPO stands at ₹210 per share, reflecting a 46% increase from the IPO price band of ₹426 to ₹448 per equity share. The GMP is a strong indicator of market sentiment and demand for the IPO shares in the unofficial market.
