Pharma Firm Innova Captab Submits IPO Papers to the SEBI

Innova Captab Ltd, a pharmaceutical company, has filed preliminary papers to SEBI, capital markets regulator to raise funds via an initial public offer (IPO).

According to the Draft Red Herring Prospectus, (DRHP), the proposed IPO includes fresh issuances of equity shares in excess of Rs 400 crore as well as an offer for sale (OFS), of 96 lakh equity securities by promoters. Manoj Kumar Lohariwala, Vinay Kumar Lohariwala & Gian Parkash Agarwal will each sell 32 lakh shares as part of the OFS.

Promotors Manoj and Vinay currently hold 396 per cent and 30.08 percent, respectively, of the company. Gian holds a 30% stake in the pharma company. The company might also consider placing equity shares pre-IPO, with a total of Rs 80 crore. The size of the new issue will be decreased if such a placement is made.

The proposed Rs 400 crore raised by equity shares will pay Rs 180.5 crore to repay debt. Rs 29.5 crore will pay UML's loans and Rs 90 crore will fund working capital. Innova Captab, an Indian integrated pharmaceutical company, is present across the entire pharmaceuticals value chain, including research and development, production, marketing, and exports.

It provides research, product development, and manufacturing services to Indian pharmaceutical companies, as well as domestic generics, as well as international generics businesses. It also has two manufacturing plants in Baddi (Himachal Pradesh). JM Financial Limited and ICICI Securities Limited were appointed merchant bankers to help manage the company's IPO.