Innova Captab Limited’s Initial Public Offering to open on Thursday, December 21, 2023, sets price band at ₹426 to ₹448 per Equity Share

Mr. Manoj Kumar Lohariwala, Chairman and Mr. Vinay Kumar Lohariwala, MD, Innova Captab addressing the media for their IPO announcement in Mumbai 

• Price Band of ₹426 – ₹448 per equity share bearing face value of ₹10 each (“Equity Shares”)
• Bid/Offer Opening Date – Thursday, December 21, 2023 and Bid/Offer Closing Date – Tuesday, December 26, 2023.
• Minimum Bid Lot is 33 Equity Shares and in multiples of 33 Equity Shares thereafter.
• The Floor Price is 42.60 times the face value of the Equity Shares and the Cap Price is 44.80 times the face value of the Equity Shares.

Mumbai, December 18, 2023: Innova Captab Limited (“Company”) 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, has fixed the price band at ₹426 to ₹448 per Equity Share for its maiden initial public offer.  The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Thursday, December 21, 2023, for subscription and close on Tuesday, December 26, 2023. Investors can bid for a minimum of 33 Equity Shares and in multiples of 33 Equity Shares thereafter.

The Offer of Equity Shares with a face value of ₹10 consists of a fresh issue of Equity Shares worth up to ₹ 3,200.00 million and an Offer for Sale (OFS) up to 5,580,357 Equity Shares, which comprises of up to 1,953,125 Equity Shares by Manoj Kumar Lohariwala, up to 1,953,125 Equity Shares by Vinay Kumar Lohariwala (Together with Manoj Kumar Lohariwala, the “Promoter Selling Shareholders”) and up to 1,674,107 Equity Shares by Gian Parkash Aggarwal (“the “Other Selling Shareholder” and together with the Promoter Selling Shareholders, the “Selling Shareholders”, and such offer for sale of Equity Shares by the Selling Shareholders, the “Offer for Sale “).

RHP: https://www.icicisecurities.com/Upload/ArticleAttachments/Innova%20Captab%20Limited%20-%20RHP.pdf

Innova Captab Limited 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. Its business includes a contract development and manufacturing organization (“CDMO”) business providing research, product development and manufacturing services to Indian pharmaceutical companies, a domestic branded generics business and an international branded generics business. In Fiscal 2022, among Indian formulation CDMO players considered in the CRISIL Report, it recorded the third highest operating revenue, the second highest operating profit margin, the third highest net profit margin and the second highest return on capital employed. (Source: CRISIL Report, October 2023).

For the three months ended June 30, 2023, it had 133 CDMO customers, in Fiscal 2023 and in the three months ended June 30, 2023, it manufactured a diverse generics product portfolio of over 600 products and market them under its own brands in the Indian market through a developed network of approximately 5,000 distributors and stockists and over 150,000 retail pharmacies and in the three months ended June 30, 2023, it exported branded generic products to 16 countries. It has a dedicated research and development (“R&D”) laboratory and pilot equipment located at its manufacturing facility in Baddi, Himachal Pradesh, which is recognized by Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India (“DSIR”). On a restated consolidated basis, the number of CDMO products it sold was 2,467 in Fiscal 2023 up 131.43% from 1,066 in Fiscal 2021.

As per the Restated Consolidated Financial Information The Company’s revenue from operations grew 15.72% to ₹ 9,263.80 million for Fiscal 2023 from ₹ 8,005.26 million for Fiscal 2022, primarily due to increase in revenue from sale of goods and services in India and outside India and profit grew 6.26% to ₹ 679.54 million for Fiscal 2023 from ₹ 639.53 million for Fiscal 2022.

For the three months ended June 30, 2023, as per its Restated Consolidated Financial Information revenue from operations stood at ₹ 2,332.43 million and profit for the three months ended June 30, 2023 stood at  ₹ 175.93 million.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.

ICICI Securities Limited, and JM Financial Limited are the book running lead managers and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE. For the purposes of the Offer, NSE is the Designated Stock Exchange

LISTING: The Equity Shares offered through the RHP are proposed to be listed on the Stock Exchanges. the Company has received ‘in-principle’ approvals from BSE and NSE for the listing of the Equity Shares pursuant to letters dated September 16, 2022, and September 15, 2022, respectively. For the purposes of the Offer, NSE is the Designated Stock Exchange. A copy of the RHP and the Prospectus shall be filed with the RoC in accordance with Sections 26(4) and 32 of the Companies Act, 2013. For details of the material contracts and documents available for inspection from the date of the RHP until the Bid/Offer Closing Date, see “Material Contracts and Documents for Inspection” on page 529 of the RHP.

DISCLAIMER CLAUSE OF SECURITIES AND EXCHANGE BOARD OF INDIA (“SEBI”): SEBI only gives its observations on the offer documents and this does not constitute approval of either the Offer or the specified securities stated in the Offer Document. The investors are advised to refer to page 447 of the RHP for the full text of the disclaimer clause of SEBI.

DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the RHP has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the RHP. The investors are advised to refer to the page 449 of the RHP for the full text of the disclaimer clause of BSE.

DISCLAIMER CLAUSE OF NSE (the Designated Stock Exchange): It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to page 449 of the RHP for the full text of the disclaimer clause of NSE.

INNOVA CAPTAB LIMITED is proposing, subject to  receipt of requisite approvals and regulatory requirements, market conditions and other considerations, to make an initial public offer of its Equity Shares and has filed a draft red herring prospectus dated June 28, 2022 with SEBI (the “DRHP”), an addendum to the DRHP dated September 12, 2023 (the “Addendum”) and a red herring prospectus dated December 14, 2023 with the RoC. The RHP is made available on the website of the SEBI at www.sebi.gov.in as well as on the website of the BRLMs i.e., ICICI Securities Limited at www.icicisecurities.com and JM Financial Limited at www.jmfl.com, the website of the NSE at www.nseindia.com and the website of the BSE at www.bseindia.com and the website of the Company at www.innovacaptab.com. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risks, please see the section titled “Risk Factors” beginning on page 33 of the RHP. Potential investors should not rely on the DRHP or the Addendum for making any investment decision but can only rely on the information included in the Red Herring Prospectus.

This announcement has been prepared for publication in India and may not be released in the United States. This announcement does not constitute an offer of securities for sale in any jurisdiction, including the United States, and any securities described in this announcement may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933 or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements. There will be no public offering of the Equity Securities in the United States.