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Innova Captab IPO Details: Launch Date, Share Price, Size, GMP & Review

Innova-Captab-IPO-Details-Launch-Date-Share-Price-Size-GMP-&-Review

Innova Captab Limited– About the Company

Incorporated in 2005, Innova Captab Limited is an Indian pharma company, operating in three main segments. It provides contract development and manufacturing services to Indian pharmaceutical companies and deals in branded generics in the domestic market. And in the third segment, it is also dealing with branded generics in international business.

Innova Captab products include capsules, tablets, dry syrups, dry powder injections, ointments and liquid medicines. In FY23 and till the first quarter of FY24, it produced and sold more than 600 different types of generic medicines.

Innova Captab is distributing its products, under the company's own brands in the Indian market through the widespread network of 5,000 distributors and stockists and over 150,000 retail pharmacies operating across the country.

The company's manufacturing facility is located in Buddi, Haryana and employs a team of 29 scientists and engineers in its research and development laboratory. And in FY23, Innova Captab is exporting, its branded generic products to 20 countries.

As of Oct 31, 2023, the company has 200 active product registrations and 20 registrations pending renewal with international authorities. Furthermore 218 new registration applications are being processed with international authorities.

Innova Captab has customers from leading pharma companies operating in India and overseas countries. Its customers include Cipla Limited, Mankind Pharma Limited, Intas Pharmaceuticals Limited, Wockhardt Limited, Glenmark Pharmaceuticals Limited, Leeford Healthcare Limited, Ajanta Pharma Limited, Corona Remedies Private Limited, Lupin Limited, Cachet Pharmaceuticals Limited, Emcure Pharmaceuticals Limited, Zuventus Healthcare Limited, Indoco Remedies Limited, J. B. Chemicals and Pharmaceuticals Limited, Medley Pharmaceuticals Limited, Smart Laboratories Private Limited, Eris Healthcare Private Limited and Oaknet Healthcare Private Limited.

Innova Captab IPO Objectives

Out of the total issue size of Rs 570 Crore, Rs 250 crore will be offered for sale by the promoters and shareholders of the company. And the remaining Rs 320 crore will be raised by issuing the fresh issue of approx. 5,580,357 equity shares by the company.

Also Read: What is IPO: How it Works & Everything Else You Need To know

Hence, the fund raised through the fresh issue of shares in IPO, will be used for the repayment of debts and borrowings of the company. Part of the fund will be also used to invest and repay the partial or full outstanding loans of its Subsidiary, UML.

Some of the portions of the fund will be also used to meet the working capital requirements of the company and general corporate purposes.

Innova Captab IPO Details:

IPO Open Date December 21, 2023
IPO Close Date December 26, 2023
Basis of Allotment December 27, 2023
Listing Date December 29, 2023
Face Value Rs 10 per share
Price Rs 426 to Rs 448 per share
Lot Size 33 Shares
Issue Size [.] shares
(aggregating up to Rs 570.00 crore)
Fresh Issue [.] Shares, aggregating up to Rs 320.00 crore
Offer For Sale [5,580,357] Shares, aggregating up to Rs 250.00 crore
Issue Type Book Built Issue IPO
Listing At BSE & NSE
QIB Shares Offered Not more than 50% of the Net Issue
Retail Shares Offered Not less than 35% of the Net Issue
NII (HNI) Shares Offered Not less than 15% of the Net Issue

 

Innova Captab IPO Issue Price & Size

The issue price of Innova Captab IPO is set between Rs 426 to Rs 448, you can bid between these two prices while applying for Innova Captab IPO. The minimum lot size of Innova Captab IPO is 33 shares, and further investors can apply into multiples of the minimum lot as per the maximum amount applicable to different investor’s category in the IPO.

The total issue size of Innova Captab IPO is Rs 570 crore, of which Rs 320 crore will be a fresh issue of equity shares, while Rs 250 crore is offer-for-sale.

Innova Captab IPO Launch Date

The Innova Captab IPO is opening on 21 Dec 2023, and ending on 26 Dec 2023. Investors can bid between these working dates and non-holidays. The date for the allotment of shares is set for Dec 27, 2023, and the listing is expected on 29 Dec 2023.

The refund of money for the non-allotment of shares will credited into the bank account from 28 Dec 2023 onwards. And, if the shares are allotted to investors, then they will be credited into the demat account on 28 Dec 2023.

Also Read: How to Open Demat Account: Benefits and Documents Required

Innova Captab Financial Statements:

Particulars (Rs in Millions) FY24 (3M) FY23 FY22 FY21 CAGR
Revenue from Operations 2,332.43 9,263.80 8,005.26 4,106.62 50.19%
Other Income 11.25 91.98 28.83 13.71
Total Income 2,343.68 9,355.78 8,034.09 4,120.33 50.69%
Operational Expenses 1814.28 7463.59 6583.65 3330.28
Other expenses 205.16 663.74 461.41 231.48
EBITDA 324.2 1228.5 989.0 558.6 48.30%
EBITDA Margin% 13.90% 13.26% 12.35% 13.60%
Depreciation 27.94 110.77 75.03 55.86
Interest 50.31 199.73 56.80 39.27
Profit Before Tax 245.99 917.95 857.20 463.44  
Total tax 70.06 238.41 217.67 118.44
PAT 175.93 679.54 639.53 345.00 40.35%
PAT Margin% 7.54% 7.34% 7.99% 8.40%  
EPS Basic (Rs) 3.67 14.16 13.32 7.19  

Sources: DRHP & RHP

Innova Captab Financial Performance

The revenue of the Innova Captab has not shown significant growth in the last three financial years. In the first three months of the first quarter of FY24, the revenue of the company stood at Rs 233.24 crore, which was Rs 926.38 crore in the full year FY23. This revenue has grown at a CAGR of 50% from Rs 410.66 crore in FY21, while EBITDA for the same period grew at a CAGR of 48.30% from FY21 to FY23. In the first three months of FY24, the EBITDA was Rs 32.42 crore.

The Profit after Tax of the company also grew well, from FY21 to FY23. In the June quarter ended FY24, the PAT of the company reached at Rs 17.59 crore, while it was Rs 67.95 crore in FY23 and Rs 34.5 crore in FY21 registering a CAGR growth of Rs 40.35% during the same period. The EBITDA margin of the company remained between 13% to 14% during FY21 to FY23, while the PAT margins were also trailing between 7% to 8% during the same period.

Innova Captab IPO Promoters & Shareholding of the Company

Manoj Kumar Lohari wala and Vinay Kumar Lohari wala are the main promoters of the company holding 38.01% and 28.82% stake respectively in the company. And both the promoters of the company, will be selling 19.53 lakh equity shares each in the OFS.

Also Read: What is Equity Share: Types, Importance &How it is Calculated

Another shareholder, Gian Parkash Aggarwal holds 28.98% in the company and will sell 16.74 lakh equity shares in the OFS. For more details about the promoter's shareholdings and their details or shareholders selling their stakes see the table below.

S.No. Name of the Shareholder No. of Equity Shares held % of pre-Offer Shareholding
  Promoter Selling Shareholders    
1 Manoj Kumar Lohariwala 19,036,000 38.01%
2 Vinay Kumar Lohariwala 14,436,000 28.82%
  Total (A) 33,472,000 66.83%
Promoter Group (other than the Promoters)
2 VandanaLohariwala 4,000 0.01%
3 ChhaviLohariwala 4,000 0.01%
  Total (B) 8,000 0.02%
 
  Other Selling Shareholder    
5 GianParkash Aggarwal 14,512,000 28.98%
  Total (C) 14,512,000 28.98%
  Grand total (A+B+ C) 47,984,000 95.81%

Sources: DRHP & RHP

Why Invest in Innova Captab IPO?

While investing in Innova Captab IPOor any other company always check its competitive strength and the risk factors that can affect the growth and revenue of the company. Its strength helps the company, to expand its operations and grow ahead in the industry and perform well better than its competitors. While the risk factors, show its weakness and the negative factors that can affect the growth prospects and revenue or earnings of the company.

Also Read: What to Check Before Buying IPO: Things to Know & Is it Safe

Strengths:

  • Pharmaceuticals are one of the consistently growing sectors in the world, providing an immense opportunity for pharma companies and healthcare institutions to keep expanding their operations. Innova Captab is also one of them going to get the advantage from this industry growth.
  • As per CRISIL Research, the Indian CDMO space has seen traction in recent times with big pharmaceutical companies preferring to outsource R&D as well as manufacturing activities. Innova Captab has the leading presence and is one of the fastest-growing CDMOs in the Indian pharmaceutical formulations market.
  • The e developed strong relationships across the Indian pharmaceutical industry. In FY23 it has 182 CDMO customers in which top companies from the pharm sector are included. The company has also entered into long-term CDMO agreements ranging mostly between two to five years with its customers to ensure its cash flow and revenue.
  • The company is operating with two manufacturing facilities in Baddi, Himachal Pradesh. All these units are capable of producing tablets, capsules, dry syrups, dry powder injections, ointments and liquid orals. As per the CRISIL research, it has been ranked third among our peers in terms of our finished tablet and capsule manufacturing capacity in India.
  • As of Fiscal 2023, branded generics contributed to 95% of the overall generics industry in India. Innova Captab is in branded generics business that consists of the development, manufacturing and distribution of generic formulation products, which are marketed and distributed in India. These domestic and international export branded generics businesses have been growing rapidly.
  • The company has a dedicated R&D laboratory and pilot equipment located at our manufacturing facility in Baddi, Himachal Pradesh. And company is increasingly engaged in R&D activities to develop various generic products, manufacturing processes and technologies for diverse segments.
  • At the financial end, the company has demonstrated strong growth in terms of revenues and profitability. In Fiscal 2022, among Indian formulation CDMO players considered in the CRISIL Report, the company has recorded the third highest operating revenue, the second highest operating profit margin and the third highest net profit margin.

Also Read: What are the Risk Factors Involved in Applying for an IPO

Risks:

  • Innova Captab is operating in a market that is highly competitive. It is competing to provide outsourced pharmaceutical manufacturing services or CDMO services and products, particularly for formulations, to pharmaceutical companies in India and other jurisdictions. In addition, its branded generic products compete with generic products of other suppliers in India and other jurisdictions.
  • Reforms in the healthcare industry and the uncertainty associated with pharmaceutical pricing, reimbursement and related matters could adversely affect the pricing and demand for the products as well as the consumer demand for the products the company manufactures for its customers, which may significantly influence business operations and financial condition.
  • The company has recently acquired Sharon, and do not yet know whether we will achieve the expected benefits from such an acquisition, which could materially adversely affect the business that can also affect the revenue and financial growth of the company.
  • The core business of the company is highly dependent and will continue to depend on its manufacturing units, which are subject to certain risks in the manufacturing process such as the failure of equipment or breakdown, extreme weather conditions, natural disasters or accidents.
  • Moreover, the company is dependent on a limited number of contract development and manufacturing organization ("CDMO") customers. Any reduction in the number of CDMO customers and adverse developments or inability to 38 enter into or maintain relationships with these CDMO customers could have an adverse effect on the business operations and earnings of the company.
  • Furthermore, any failure to comply with the quality requirements and technical specifications prescribed by its customers may lead to loss of business from such customers and could result in cancellation of existing and future orders which may expose warranty claims that will negatively impact the business operations and revenue of the company.
  • The company is looking to expand its business, and to start such projects delay in funding requirements and proposed deployment of the Net Proceeds may be subject to change based on various factors, some of which are beyond the control of the company.
  • For capital expenditure company requires substantial financing for our business operations and planned capital expenditure and the failure to obtain additional financing on terms commercially acceptable to us may adversely affect the ability to grow and the future profitability of the company.
  • For the supply of raw materials, Innova Captab is dependent on China, China SEZ and Hong Kong which is also exposed to political, economic and social conditions in greater China.
  • Moreover, any shortfall in the supply of raw materials or an increase in the raw material costs, or other input costs, may adversely affect the pricing and supply of its products and adversely affect the operating income and profit margins of the company.

Also Read: Types of Risks Associated with Investing in the Stock Market

Innova Captab IPO Grey Market Premium (GMP)

The Grey Market Premium (GMP) is the premium price over the upper band of the IPO issue price. The GMP is determined by the speculators in the grey market as per the demand and supply of the equity shares in the primary market. The GMP can give an idea at what price the share price is going be listed on the stock exchange but it is not a reliable factor to know the fair price of any unlisted company, as it keeps fluctuating before the day of listing

Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable

According to the various online resources, the Grey Market Premium (GMP) of Innova Captab IPO is running at Rs 210 which is approximately 47% above the upper price band of the IPO issue price of Rs 448. And if this GMP remains stable the share price of Innova Captab is likely to list at or around Rs 658 providing the wonderful opportunity for the investors to monetize their investment into Innova Captab IPO by booking the profit on the listing of the shares.

Also Read: What is Profit Booking in Stock Market: Rules & Best Strategy

Innova Captab IPO Review & Analysis

As per the DRHP and RHP offer documents, in the last three financial years, the company has reported an average EPS of Rs. 11.56. And while considering the annualized earnings of FY23, its upper band share price is valuated at a P/E of 31.64.

At this level of P/E, the share price of Innova Captabis fairly priced, as its listed peers are also trading in the same P/E range. Hence, you can subscribe or apply to the Innova Captab IPO with a time horizon of medium to long-term investment perspective.

How to Apply for Innova Captab IPO?

If you have a trading account and a demat account you can easily apply for any IPO of the company including Innova Captab IPO. However, If you don't have any or both of these accounts just apply here at Moneysukh to open a trading account with one-stop trading and investing solutions for various financial markets like equities, commodities and forex trading including primary markets like IPOs and secondary markets in stocks and mutual funds or ETFs.

Also Read: What to Know Before Investing in Stocks: 10 Things to Consider

Moneysukh is one of the best discount brokers in India providing the best trading platform and best trading software such as Trade Radar backed with TradingView charting system for traders and investors to perform the fundamental analysis and technical analysis and pick the best stocks for intraday trading or for the long-term investment in the stock market.

Also Read: Benefits of Investing in the Stock Market: Advantages of Share Market

Moneysukh is also providing online facility trade with Algo-trading with the best Algo-trading platform and the most profitable Algo-trading strategies at low pricing. However, if you are already a customer of Moneysukh, and looking to apply for the Innova Captab IPO, you just need to follow the stepwise guidance given below.

Also Read: How to Start Algo Trading in Moneysukh: A Best Algo Trading Platform

Steps to Apply for Innova Captab IPO:

Step 1: Wait for the date Innova Captab IPO opens for online bidding.

Step 2: Now open trade.moneysukh.com and log in with your User ID & password.

Step 3: Here go through the IPO section and select the Innova Captab IPO.

Step 4: Now just fill in all the required details like price, quantity, and so on.

Note: While applying in any IPO, always bid at the cutoff price before submitting your application.

Step 5:Make sure to pay the required money before submitting your IPO application.

Also Read: Why You Should Invest in the Stock Market: Reasons & Benefits

How to Check Innova Captab IPO Allotment Status?

As per the online sources, the allotment process of Innova Captab IPO is set for 27 Dec 2023, investors can check the Innova Captab application status from this date onwards. To check the Innova Captab IPO allotment status, you can use various online sites.

Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh

Many times IPOs are oversubscribed into multiple folds, which reduces the chances of getting the allotment of shares for everyone into different categories including the retail category and HNI category. If you have not been allotted any shares in the Innova Captab IPO allotment, your IPO application money will be returned back into your bank account by 28 Dec 2023. However, despite an oversubscribed IPO, if you are lucky enough to get the allotment, then the allocated shares will be credited into your demat account before the day of listing, by 27 Dec 2023.

Also Read: How to Increase the Chances of IPO Allotment

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