Innova Captab IPO: Latest Subscriptions Status, GMP Here; Is It Worth Bidding On Last Day?

The pharmaceutical company, Innova Captab has fully subscribed in its two days of initial public offering (IPO). The last date for bidding is December 26th, as the market will be closed on December 25th on account of the Christmas holiday. The IPO which is proposed to be listed on both BSE and NSE, has received robust demand from across investor categories.

Innova Captab IPO Latest Subscriptions Status:

As per the NSE data, cumulatively, the IPO has received bids of 3,20,55,177 equity shares, against its offered size of 90,78,010 equity shares, registering an oversubscription of 3.53x.

The portion for Retail Individual Investors (RIIs) oversubscribed by 5 times, while the portion for Non Institutional Investors oversubscribed by 3.26x. Lastly, the reserved portion for Qualified Institutional Buyers (QIBs) oversubscribed by 1.08x.

Innova Captab IPO GMP:

As per the Investor Grain website, Innova Captab IPO's last GMP is Rs 160, last updated Dec 23rd 2023 11:23 PM. With a price band of 448.00, Innova Captab IPO's estimated listing price is Rs 608 (cap price + today's GMP). The expected percentage gain/loss per share is 35.71%.

Innova Captab IPO Details:

The 100% book-building IPO opened on December 21, and will be available for subscriptions till December 26. However, there will be no bidding allowed on December 23rd and 24th due to weekend holidays followed by a market holiday on December 25th due to the celebration of Christmas.

The company is looking to raise up to Rs 542-570 crore. At the upper price band, the IPO comprised of fresh issues worth Rs 320 crore and an offer for sale of up to Rs 250 crore.

The price band for the IPO is fixed at Rs 426 to Rs 448 per share. The bid lot size is 33 Equity Shares and in multiples thereof.

Should you subscribe to the IPO on the last day?

As per KR Choksey's report, Innova Captab Limited is promoted by experienced management such as Manoj Kumar Lohariwala (Chairman and the whole time Director) and Vinay Kumar Lohariwala (Promoter and Co-Founder and MD) (holding 66.8% pre-IPO), with over 26 and 21 years of industry experience, respectively, in the field of manufacturing and marketing of pharmaceutical products. The company is considered to be the third largest in terms of revenue generated and net profit margin generated in FY22 as per CRISIL among the CDMO players.

The brokerage also pointed out that it has 14 of the top 15 Indian pharma companies as its customers for its CDMO services. Its branded generics business is also growing at a strong pace in line with increased demand for branded generics products in India and overseas markets as well as its increased capacity for the same.

Also, it highlighted that the company has acquired 100% of Sharon Bio - Medicine Limited under the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC) in Q1FY24 for Rs. 1,954 Mn. The acquired company is into API and intermediates
and finished dosages manufacturing and CDMO services, largely exporting with 75.3% of revenue coming from it for FY23. The acquisition has been made at ~12.5x Sharon's EBITDA for FY23, which looks slightly expensive.

Lastly, the brokerage said, "Nevertheless, given the likely synergies from the acquired entity and incremental revenue and improved profitability, we recommend Subscribe to the issue."

Post the IPO, the proposed equity shares will be listed on BSE and NSE, probably on December 29. Its peers will be Torrent Pharma and Laurus Labs.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.