Pharmaceutical company Innova Captab has filed preliminary papers with the capital markets regulator Sebi to raise as much as Rs 900 crore through an Initial Public Offering (IPO). The proposed IPO comprises fresh issuance of equity shares worth Rs 400 crore and an Offer For Sale (OFS) of 96 lakh equity shares by promoters and other shareholders, according to the Draft Red Herring Prospectus (DRHP).
As part of the OFS, Manoj Kumar Lohariwala, Vinay Kumar Lohariwala and Gian Parkash Aggarwal will sell 32 lakh shares each. At present, promoters — Manoj and Vinay — hold 39.66 per cent and 30.08 per cent stake, respectively, in the company, while Gian owns a 30.23 per cent holding in the pharma firm.
Besides, the company may consider pre-IPO placement of equity shares aggregating up to Rs 80 crore. If such a placement is undertaken, the size of the fresh issue will be reduced. According to market sources, the initial share sale is expected to raise anywhere between Rs 700 crore and Rs 900 crore. Out of the Rs 400 crore proposed to be raised through fresh issuance of equity shares, Rs 180.5 crore will be used for payment of debt and Rs 29.5 crore will be utilised for payment of loans availed by its subsidiary UML.
The Haryana-based Innova Captab is an integrated pharmaceutical company in India with a presence across the pharmaceuticals value chain including research and development, manufacturing, drug distribution and marketing and exports. The company’s business includes providing research, product development and manufacturing services to Indian pharmaceutical firms, domestic branded generics as well as international branded generics businesses. It has two manufacturing facilities in Baddi, Himachal Pradesh and a new facility is to come up in Jammu.
The companies revenue from operations rose 10 per cent to Rs 410.66 crore in fiscal 2021 from Rs 373.32 crore in the preceding fiscal. Profit after tax grew 23.70 per cent to Rs 34.50 crore in fiscal 2021 from Rs 27.89 crore in fiscal 2020. ICICI Securities Limited and JM Financial Limited have been appointed as merchant bankers to manage the company’s IPO.