Innova Captab Ltd, whose grey market premium (GMP) has plunged in last few sessions, will make its stock market debut on Friday. Last heard, the integrated pharmaceutical company was commanding a grey market premium of Rs 32 per share, suggesting a potential listing at around Rs 480, which would be a 7 per cent premium over the issue price of Rs 448.
The Innova Captab IPO, which ran from December 21 and December 26, received a strong investor response, receiving bids of 50,16,58,245 shares against the offered 90,78,010 equity shares. In total, the issue was subscribed 55.26 times.
The quota reserved for qualified institutional buyers was subscribed 116.73 times while that for non-institutional investors received 64.94 times subscription. The retail portion also attracted 17.15 times bids. That said, the recent volatility in the market hurt its GMP, which has fallen from a recent high of Rs 160 to a low of Rs 32 apiece.
Innova Captab, which has Torrent Pharma and Laurus Labs Ltd among its peers, is a domestic integrated pharmaceutical company, with a presence across pharmaceuticals value chain including research and development, manufacturing, drug distribution and marketing and exports.
The business includes CDMO business providing research, product development and manufacturing services to domestic drug makers, branded generics business and an international branded generics business. As per CRISIL, Innova Captab was the third largest domestic CDMO player in terms of revenue generated and net profits margin generated in FY22.
For the quarter ended June 30, Innova Captab had 133 CDMO customers. It manufactured over 600 generics products, marketing them under its own brands through a developed network of approximately 5,000 distributors and stockists and over 150,000 retail pharmacies. Innova Captab exported branded generic products to 16 countries.
It has a dedicated reserach laboratory and pilot equipment in Baddi, Himachal Pradesh, recognised by Department of Scientific and Industrial Research, Ministry of Science and Technology. On a restated consolidated basis, Innova Captabsold 2,467 CDMO products in FY23, up 131.43 per cent from 1,066 in FY21.
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