The amount will be used to pay off the loan.
Innova Captab IPO: The initial share sale is expected to raise between Rs 700 crore to Rs 900 crore. Of the funds received through the IPO, Rs 180.5 crore will be used to pay off the debt.
Pharmaceutical company Innova Captab Limited (Innova Captab LtdSecurities and Exchange Board of India (SEBI) to raise Rs 900 crore through an initial public offering (IPO)Sebi) have submitted the initial documents. According to the documents, fresh equity shares of up to Rs 400 crore will be issued in the proposed IPO. Offer for sale (OFS) of 96 lakh equity shares will be brought by the promoters and other shareholders of the company. Under the OFS, Manoj Kumar Lohariwala, Vinay Kumar Lohariwala and Gyan Prakash Agarwal will sell 32 lakh shares each. According to market sources, the initial share sale is expected to garner between Rs 700 crore and Rs 900 crore.
Presently, promoters Manoj and Vinay hold 39.66 per cent and 30.08 per cent respectively in the company, while Gyan Prakash holds 30.23 per cent in the pharma firm. In addition, the company may consider pre-IPO placement of up to Rs 80 crore. If this were the case, the size of the new issue would decrease.
ICICI Securities Limited and JM Financial Limited have been appointed as merchant bankers to manage the company’s IPO.
use of money
Out of the amount raised from the IPO, Rs 180.5 crore will be used to pay off the loan. 29.5 crores will be used to repay the loan taken by its subsidiary company UML. Along with this, Rs 90 crore will be used for working capital requirements.
Innova Captab is an integrated pharmaceutical company of the country. The company has a presence in the pharmaceuticals value chain including research and development, manufacturing, drug distribution and marketing and exports. The company also provides manufacturing services to Indian pharmaceutical companies and conducts domestic as well as international branded generic business.
The firm has two manufacturing facilities in Baddi, Himachal Pradesh, which produce tablets, capsules, dry syrups, dry powder injections, ointments and liquid oral. It ranks third in India in terms of tablet and capsule manufacturing capacity.
The company’s revenue for FY 2011 was Rs 410.66 crore as against Rs 373.32 crore in the previous year. Net profit for the year stood at Rs 34.50 crore as against Rs 27.89 crore in FY15. In the nine months ended December 2021, revenue was Rs 584.12 crore and net profit was Rs 50.88 crore.