Innova Captab Secures Rs 171 Crore From Anchor Investors

Integrated pharmaceutical company Innova Captab on Wednesday said it has collected Rs 171 crore from anchor investors a day before its Initial Public Offering (IPO).

The company has allotted 38.17 lakh equity shares to 17 funds at Rs 448 apiece, which is the upper end of the price band, according to a circular uploaded on the BSE website.

Investors that participated in the anchor book include ICICI Prudential Mutual Fund (MF), Kotak Mahindra MF, Whiteoak MF, Bandhan MF, Canara Robeco MF, 360 One MF, Edelweiss MF, SBI Life Insurance Company, and Aditya Birla Sun Life Insurance.

Of the total allocation of 38.17 lakh equity shares to anchor investors, 17.13 lakh equity shares were allocated to six domestic mutual funds through a total of eight schemes amounting to Rs 76.74 crore -- 45% of the total anchor book size, it showed.

The maiden public issue comprises a fresh issue of equity shares worth up to Rs 320 crore and an Offer-For-Sale (OFS) of up to 55.80 lakh equity shares by promoters and selling shareholders.

Those selling shares in the OFS are Manoj Kumar Lohariwala, Vinay Kumar Lohariwala, and Gian Parkash Aggarwal.

The issue, with a price band of Rs 426-448 per share, will open on Dec. 21 and conclude on Dec. 26.

At the upper end of the price band, the IPO is expected to fetch Rs 570 crore.

Proceeds from fresh issuance worth Rs 144.40 crore will be utilised for payment of the debt, Rs 23.60 crore for investment in the subsidiary, UML, Rs 72 crore for funding working capital requirements, besides, a portion will be used for general corporate purposes.

Innova Captab is an integrated pharmaceutical company with a presence across the pharmaceuticals value chain, including research and development, manufacturing, drug distribution, and marketing, and exports.

The company's consolidated revenue from operations grew 15.72% to Rs 926.38 crore for FY23 from Rs 800.53 crore in the preceding fiscal while profit after tax rose 6.26% to Rs 67.95 crore for FY23 from Rs 63.95 crore in FY22.

ICICI Securities and JM Financial are book-running lead managers to the IPO. The equity shares are proposed to be listed on the BSE and the NSE.