December 29, 2023
New Delhi, India
Innova Captab IPO Details:
In a recent market debut, Innova Captab, a prominent pharmaceutical company, quietly entered the stock market with a 2% premium over its issue price of Rs 448. The initial listing saw the stock at Rs 456 on the BSE, and at Rs 452 on the NSE, marking a modest start.
IPO Success and Subscription Trends:
Despite the quiet debut, Innova Captab’s initial public offering (IPO) received significant attention and was oversubscribed 55.26 times. The strong subscription rates were particularly notable among Qualified Institutional Buyers (QIBs), who showed a keen interest with a subscription rate of 116.73 times. Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs) also subscribed at high rates of 64.95 times and 17.75 times, respectively.
Diverse Business Operations:
Innova Captab, an integrated pharmaceutical company, operates across the pharmaceutical value chain, encompassing research and development, manufacturing, distribution, marketing, and exports. The company’s expertise lies in the large-scale manufacturing of generic products, including innovative technologies like Nano technology. Ranking third in revenue and net profit margin among contract development and manufacturing (CDMO) players, Innova Captab boasts a robust customer base, counting 14 of the top 15 Indian pharma companies as clients for its CDMO services.
Strategic Acquisition and Growth Prospects:
A notable move by Innova Captab was the recent acquisition of 100% of Sharon Bio-Medicine, a venture into API and intermediates, finished dosages manufacturing, and CDMO services. While the acquisition was at a relatively higher cost (12.5x of Sharon’s EBITDA for FY23), analysts remain optimistic about the potential synergies, incremental revenue, and profitability. With the expected growth in the CDMO segment at 14-16%, driven by outsourcing from major pharmaceutical companies, the acquisition is anticipated to contribute to the company’s expansion, both domestically and internationally.
In conclusion, while the market entry was quiet, Innova Captab’s journey post-IPO showcases promise and potential for sustained growth in the dynamic pharmaceutical industry.
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