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Innova Captab IPO Check Price Band Lot Size GMP and More

Introduction:

2023 proved to be a blockbuster year for Indian IPO investors. The year saw one IPO hitting the market every day on average. By the year’s end, 230 IPOs will have been launched in 246 trading days of the calendar year. In the second-last week of December 2023, as many as eight mainboard companies have geared up to launch their Initial Public Offerings (IPOs).

One such company is Innova Captab Limited, an integrated pharmaceutical company operating across three business segments. It plans to raise approximately Rs. 570 crores through its IPO, comprising a fresh issue and an offer for sale. The IPO opened for public subscription on Thursday, 21 December 2023, and will remain open till Tuesday, 26 December 2023.

Continue reading to learn more about the Innova Captab IPO, including price band, lot size, latest grey market premium (GMP), subscription status, and more. 

About Innova Captab Limited

Incorporated in 2005, Innova Captab Limited operates as an integrated pharmaceutical entity across three distinct business verticals. The first vertical involves offering Contract Development and Manufacturing (CDMO) services to Indian pharmaceutical firms. The second vertical focuses on the domestic pharmaceutical market, specialising in branded generics formulated through the process patent methodology. Lastly, the third vertical handles international operations, distributing branded generics to global markets.

Innova Captab Ltd’s product portfolio comprises tablets, capsules, dry syrups, powders, injections, ointments, and liquid medications. During the financial year 2023, the company produced and marketed over 600 distinct generic variants under its proprietary brands. As of 31 March 2023, the company had 182 CDMO clients, which include some marquee names such as Cipla Ltd., Glenmark Pharma Ltd., Wockchardt Ltd., Corona Remedies Pvt. Ltd., Lupin Ltd., Intas Pharmaceuticals Ltd., and Leeford Healthcare Ltd., among others.

Key Strengths of the Company

Below are the key strengths of Innova Captab Ltd., as highlighted in the Red Herring Prospectus (RHP) available on the Securities and Exchange Board of India (SEBI) website:

  • The company is one of the leading players offering CDMO services to pharmaceutical companies in India (as per CRISIL report)
  • The company enjoys long-standing relationships with marquee CDMO clients
  • The company boasts world-class manufacturing facilities with state-of-the-art infrastructures and latest technologies
  • Along with the domestic supply, the company’s export business has grown exponentially in recent years
  • The company offers more than 600 products across diverse therapeutic areas

Key Risks or Weaknesses Highlighted

The key risks or weaknesses associated with Innova Captab Ltd. include:

  • The company derives a giant portion of its revenue from a limited number of customers. Unfavourable relationships with them may adversely impact the business
  • The company is highly dependent on China, China SEZ, and Hong Kong to procure raw materials. Unforeseen circumstances in these regions may impact the raw material supply
  • The company has to maintain adherence to strict quality and regulatory guidelines. The inability to do so may lead to a loss of revenue
  • The company operates in a highly competitive industry. Failure to keep up with the competitors can lead to a loss of business
  • The company’s manufacturing and R&D units are located in Himachal Pradesh, a region prone to natural disasters and unrest

Core Financials of the Company

The financials of Innova Captab Limited reflect steady growth in the last three years. The company’s revenue from operations and net worth have grown robustly while the profit after tax has remained almost constant. Refer to the table below for detailed financials of the company for the last three financial years:

Particulars For the Period Ended June 2023 As of and for FY Ended March 31
2023 2022 2021
Share Capital 48 48 12 12
Net Worth 366 277 209 145
Total Borrowings 442 235 198 45
Revenue From Operations 233 926 801 411
EBITDA Adjusted 32 123 99 56
Profit After Tax 18 68 64 35
Earnings Per Share (Diluted) 4 14 13 7
Return on Equity 6% 25% 31% 24%

*Amount in Crores

Source – RHP dates 14 December on the SEBI website

Details of the IPO

As of 21 December 2023, Innova Captab IPO is subscribed 2.2 times in retail and 1.44 times overall. Retail investors can apply for a minimum of 33 shares (one lot) in the price band of Rs. 426 to Rs. 448. The table below illustrates crucial IPO details:

IPO Date

21 December to 26 December 2023
Basis of Allotment 27-Dec
Listing Date 29-Dec
Face Value Rs. 10 per share
Price Band Rs. 426 to Rs. 448
Lot Size 33 shares
Total Issue Size Rs. 570 crores
Fresh Issue Rs. 320 crores
Offer For Sale Rs. 250 crores
Issue Type Book Built Issue
Listing At NSE, BSE

The final word

As of 21 December 2023, Innova Captab IPO shares were attracting a GMP of Rs. 210, indicating a listing gain of around 47%. You can invest in the IPO after considering your risk appetite, financial goals, and the prevailing market conditions.

 

Related Articles:  How to Analyse an IPO | What is IPO Grading? | What is Cut Off Price In IPO Application 

 

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