Against an IPO price of Rs 448, Innova Captab starts flat at Rs 456

 Against an IPO price of Rs 448, Innova Captab starts flat at Rs 456

Against an IPO price of Rs 448, Innova Captab starts flat at Rs 456

Investors responded favorably to the pharmaceutical company's Rs 570 crore public offering, with subscriptions exceeding 55.26 times between December 21 and 26. 116.73 times more was purchased by Qualified Institutional Buyers (QIBs) than was allocated to them.

Retail investors and high net worth individuals (HNIs) shown great interest in the offering by subscribing 17.15 times the reserved share and 64.95 times the authorized quota.

This year, Innova CapTab made its last mainboard debut, listing at a meager 1% premium over the issue price. In contrast to the IPO price of Rs 448, the shares began trading at Rs 456 on the BSE and Rs 452 on the NSE. Although experts had anticipated listing profits of 10–20%, the general sluggish market soured the mood.

Investors responded favorably to the pharmaceutical company's Rs 570 crore public offering, with subscriptions exceeding 55.26 times between December 21 and 26. 116.73 times more was purchased by qualified institutional buyers (QIBs) than was allocated to them.

Retail investors and high net worth individuals (HNIs) shown great interest in the offering by subscribing 17.15 times the reserved share and 64.95 times the authorized quota.

The completed dosage formulation manufacturing firm, situated in Himachal Pradesh, recorded revenue growth between FY21-FY23 at a compound annual growth rate (CAGR) of 50.2%, reaching Rs 926.4 crore in the year ending March FY23. At the same time, the CDMO business expanded at a CAGR of 35.36 percent, reaching Rs 679.6 crore in FY23.

Several well-known domestic pharmaceutical businesses, including as Cipla, Glenmark Pharmaceuticals, Wockhardt, Emcure Pharmaceuticals, Lupine, Intas Pharmaceuticals, Indoco Remedies, Zuventus Healthcare, Ajanta Pharma, and Mannkind Pharma, are among the clients of its CDMO business.

The net new proceeds of Rs 168 crore would be used by Innova Captab to settle its debt and those of its subsidiaries. An additional Rs 72 crore will be used for working capital needs. The remainder of the revenue will be retained for basic business needs.

Due to the stock's improved operational performance—which is anticipated to be fueled by increased activity at the newly acquired Sharon Bio-Medicine as well as the prompt completion and commercialization of a project in Jammu—many analysts are optimistic on the company.

One of the most crucial dangers to keep an eye on is the company's reliance on raw material supply from China, the China Special Economic Zone, and Hong Kong; any interruption in this area might have a negative financial effect.