Innova Captab IPO is coming up with a fresh issue of shares worth INR 320 crores and an offer to sell 55 lahks of existing equity shares for INR 250 crores. The company will use the funds raised to prepay company loans, invest in UML and its subsidiary, meet the working capital requirements, and fulfill general corporate needs.
Innova Captab Limited IPO – Important Details
| Innova Captab IPO Date | December 21, 2023 to December 26, 2023 |
| Innova Captab IPO Listing Date | December 29, 2023 |
| Innova Captab IPO Price | INR 426 to INR 448 per share |
| Innova Captab IPO Lot Size | 33 Shares |
| Innova Captab IPO Total Issue Size | INR 570 crores |
| Innova Captab IPO Basis of Allotment | December 27, 2023 |
| Innova Captab IPO Initiation of Refunds | December 28, 2023 |
| Innova Captab IPO Credit of Shares to Demat | December 28, 2023 |
| Innova Captab IPO Issue Type | Book Built Issue IPO |
| Innova Captab IPO Listing At | BSE, NSE |
Innova Captab Limited IPO – Company Profile
Innova Captab is an Indian pharmaceutical company that operates throughout the value chain, encompassing research, development, manufacturing, drug distribution, marketing, and exports. Key segments include CDMO services and domestic and international branded generics, reflecting a diversified business model.
The company’s foundation lies in in-house research and development (R&D), which is pivotal for attracting CDMO customers and expanding the branded generic portfolio. Certified facilities in Himachal Pradesh comply with GMP, WHO, and EU-GMP, with plans for a new R&D center in Haryana.
The company’s CDMO services involve large-scale generic product manufacturing, including diverse dosage forms and advanced technologies like nanotechnology. The extensive portfolio spans acute and chronic therapeutic areas, covering top-selling categories in the Indian formulation market.
Innova Captab Limited IPO – Fundamental Analysis
Innova Captab’s IPO showcases robust sales growth, increased investments, and rising valuable assets. Despite rising expenses and fluctuating profits, the company continues to generate more revenue, making its assets more valuable and attracting potential investors.
Revenue Growth:
There’s a consistent increase in revenue from ₹4,106.62 million in 2021 to ₹9,263.80 million in 2023, showing a positive trend in sales over the years.
Equity and Liabilities:
Both equity and liabilities have increased over the years, indicating growth in the company’s capital base. This can be seen as a positive sign, as long as the increase in liabilities is not disproportionate.
Expenses:
The expenses have also grown, which is expected with increasing revenue. However, the rate of increase should be monitored to ensure it doesn’t outpace revenue growth, affecting profitability.
Profit and Loss After Tax (PAT):
There is consistent growth in PAT, which is a good sign. The company has been able to improve its profitability from ₹345 million in 2021 to ₹679.54 million in 2023.
Return on Net Worth (RoNW):
RoNW increased initially but then declined in 2023, indicating a dip in profitability concerning the net worth of the company.
Net Asset Value (NAV) per Equity Share:
The NAV per share has consistently increased, which is a positive sign for investors as it reflects an increase in the company’s underlying assets per share.
Earnings per Share (EPS):
EPS has shown growth over the years, indicating the company’s ability to generate profits for shareholders.
Total Assets:
The company’s total assets have also increased significantly over the years, showing expansion and potentially a stronger position in the market.
Innova Captab IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in Million) | 4,106.62 | 8,005.26 | 9,263.80 |
| Equity (₹ in Million) | 1,448.21 | 2,086.06 | 2,765.06 |
| Expenses (₹ in Million) | 3,656.89 | 7,176.89 | 8,437.83 |
| Profit and Loss After Tax (₹ in Million) | 345.00 | 639.53 | 679.54 |
| RoNW (%) | 23.83 | 30.66 | 24.58 |
| NAV per Equity Share (₹) | 30.16 | 43.45 | 57.60 |
| Diluted EPS only (₹) | 7.19 | 13.32 | 14.16 |
| Total Assets (in million) | 3,696.16 | 5,754.75 | 7,044.14 |
| Total Liabilities (in million) | 2,247.95 | 3,668.69 | 4,279.08 |
Innova Captab Ltd IPO Peer Comparison
Innova Captab Ltd shows strong revenue, competitive EPS, and RoNW. Its moderate P/E and NAV per Equity Share position it well among peers. Torrent Pharma and Ajanta Pharma lead in revenue and EPS, while Windlas Biotech has a lower P/E ratio.
| Company | Revenue (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Innova Captab Limited | 9,263.80 | 10 | NA | 14.16 | 14.16 | 24.58% | 57.60 |
| Suven Pharmaceuticals Limited | 13,403.29 | 1 | 22.74 | 15.44 | 15.42 | 13.83% | 111.58 |
| Torrent Pharmaceuticals Limited | 96,201.50 | 5 | 57.61 | 36.79 | 36.79 | 20.11% | 182.97 |
| Ajanta Pharma Limited | 37,426.40 | 2 | 42.91 | 45.89 | 45.89 | 17.36% | 267.41 |
| Eris Life sciences Limited | 16,851.49 | 1 | 33.01 | 28.10 | 28.07 | 17.10% | 160.85 |
| Indoco Remedies Limited | 16,686.11 | 2 | 22.74 | 15.44 | 15.42 | 13.83% | 111.58 |
| J. B.Chemicals and Pharmaceuticals Limited | 31,492.83 | 2 | 28.61 | 53.00 | 52.34 | 16.54% | 320.36 |
| Laurus Labs Limited | 60,405.50 | 2 | 25.53 | 14.69 | 14.64 | 19.74% | 74.92 |
| NATCO Pharma Limited | 27,071.00 | 2 | 19.90 | 39.18 | 39.18 | 14.84% | 264.21 |
| Windlas Biotech Limited | 5,130.83 | 5 | 22.04 | 19.70 | 19.70 | 10.61% | 192.02 |
| Indoco Remedies Limited | 16,686.11 | 2 | 22.74 | 15.44 | 15.42 | 13.83% | 111.58 |
Innova Captab IPO Objective
Innova Captab plans to allocate INR 144 crores to repay loans, enhancing financial health. INR 23.60 crores will be invested in subsidiary UML. INR 72 crores will fund working capital, ensuring stability. The remaining proceeds will support general corporate needs, including growth, expenses, and addressing unforeseen exigencies.
- Prepayment, in part or in full, of certain outstanding company loans: Innova Captab plans to allocate INR 144 crores from net proceeds to partially or fully repay certain company borrowings. This strategy aims to decrease indebtedness, lower debt-servicing expenses, improve the debt-equity ratio, and facilitate internal accruals for business growth.
- Investment in their Subsidiary, UML: The company plans to allocate INR 23.60 crores from net proceeds to invest in its subsidiary UML for repayment of loans availed by UML.
- Funding our working capital requirements: The company proposes to allocate INR 72 crores from funds raised to support working capital needs, enhancing financial stability and operations.
- General corporate purposes: The company plans to use the Net Proceeds for general corporate purposes, including strategic growth, routine business expenses, service borrowings, brand building, marketing, and addressing unforeseen exigencies.
Innova Captab Limited IPO Risks And Challenges
Innova Captab confronts operational risks in manufacturing and competes in the dynamic CDMO industry. Influenced by reforms and regulations, the evolving healthcare landscape requires adaptability to navigate challenges related to government influences, price controls, and healthcare cost containment efforts.
- Innova Captab’s manufacturing, involving tablets, capsules, injections, and hazardous substances, faces operational risks such as equipment breakdowns, accidents, and environmental compliance challenges. Accidents may lead to interruptions, legal consequences, and adverse effects on business and finances.
- The company competes in the highly fragmented CDMO industry, facing competition from various players based on product portfolio, supply quality, services, and cost-effectiveness. Market dynamics and potential divestments add to competitive challenges, emphasizing the need for adaptability.
- The healthcare industry’s evolving landscape, influenced by reforms, funding changes, and regulations, challenges the company’s services and products. Government and third-party influences, price controls, and healthcare cost containment efforts impact revenue and profitability, necessitating adaptability.
Innova Captab Limited IPO – Industry & Market Potential
The global pharmaceutical industry, traditionally dominated by high-income countries, is experiencing a shift in production and consumption to middle-income nations like India and China. With double-digit growth, these “pharmerging” markets attract strategic attention from multinational pharmaceutical companies.
The CDMO model, driven by globalization, cost-cutting, and a focus on optimizing operations, has gained prominence in the global pharmaceutical industry. Pharmaceutical companies are outsourcing manufacturing and R&D activities to enhance efficiency, reduce costs, and leverage expertise in emerging markets, fostering the expansion of contract manufacturing and outsourcing.
CROs provide outsourcing services supporting pharmaceutical companies in drug and new chemical entity development, clinical research, patient recruitment, clinical monitoring, analytics, biostatistics, and regulatory consultations, contributing to the pharmaceutical industry’s research and development efforts.
Innova Captab Ltd IPO – Type of Offer
Innova Captab plans a fresh issue of shares seeking INR 320 crores to prepay company loans, invest in UML, and cover working capital and general corporate needs. Additionally, the company proposes an offer for sale, intending to sell 55 lakh of existing equity shares for INR 250 crores.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 320 crores. The company intends to utilize the proceeds from the fresh issue for the prepayment of certain outstanding borrowings availed by the company and its subsidiary, to meet its working capital requirement and general corporate purposes.
- Offer for sale: Innova Captab Limited is offering to sell 55 lakh existing shares for INR 250 crore. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale |
| Manoj Kumar Lohariwala | 19,53,125 |
| Vinay Kumar Lohariwala | 19,53,125 |
Innova Captab IPO Offer Size
Innova Captab intends to raise INR 320 crores through new share issuance, aiming to repay loans, invest in UML, and address working capital and general corporate requirements. Additionally, a 55 lakh equity share offer for sale is planned to generate INR 250 crores.
Innova Captab IPO Allotment Structure
Innova Captab allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) in accordance with SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs
How to apply for an Innova Captab Ltd IPO?
To apply for the Innova Captab IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Innova Captab IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for the Innova Captab Limited’s IPO at Alice Blue [M1] in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Innova Captab IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Innova Captab IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Innova Captab IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Innova Captab IPO:
Registrar’s Website: Visit the website of Link In Time KFin Technologies Limited, the registrar of the Innova Captab IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Innova Captab IPO Offer Registrar
The registrar for the Innova Captab IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFin Technologies Limited
Selenium, Tower B, Plot No –31 and 32, Financial District
Nanakramguda, Serilingampally
Hyderabad, Rangareddi 500 032
Telangana, India
Telephone:+91 40 6716 2222
Email: [email protected]
Website: www.kfintech.com
Innova Captab IPO FAQs
1. What is the allotment date of the Innova Captab IPO?
The allotment date of Innova Captab IPO is December 27, 2023.
2. What is the price band of the Innova Captab IPO?
The price band of Innova Captab IPO is INR 426-448.
3. What is the size of the Innova Captab IPO?
Innova Captab intends to raise INR 320 crores through new share issuance, aiming to repay loans, invest in UML, and address working capital and general corporate requirements. Additionally, a 55 lakh equity share offer for sale is planned to generate INR 250 crores.
4. What is the listing date of the Innova Captab IPO?
The listing date of Innova Captab IPO is December 29, 2023.
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