Innova Captab IPO Commands Remarkable 11.5x Oversubscription on Day 3, While GMP Witnesses a Subsequent Decline.
Innova Captab operates across three business segments, offering contract development and manufacturing services to domestic pharmaceutical firms.
Summary
> The Innova Captab IPO concludes today, with a subscription of 3.65x on Day 2.> The IPO price band is set at Rs 426-448, and the lot size is 33 equity shares.> The issue size stands at Rs 570 crore, with the company raising Rs 171 crore through anchor investors.Innova Captab’s IPO
Initial public offering (IPO) has witnessed substantial traction from investors, displaying a robust subscription rate of 3.65 times at the close of Day 2. Commencing on December 21, the IPO seeks to raise Rs 570 crore through its initial stake sale, presenting a price band of Rs 426-448 per share and a minimum lot size of 33 equity shares.
By 1:15 pm on Day 3, the total bids surged to 10,41,26,352 equity shares, representing an impressive 11.47 times the available 90,78,010 equity shares. This enthusiastic response underscores the strong investor confidence in Innova Captab’s prospects.
The IPO incorporates a mix of fresh issue and an offer for sale (OFS), with the pharmaceutical company aiming to raise Rs 570 crore through the former, while promoters and other shareholders plan to sell 55,80,357 equity shares via the latter.
The substantial oversubscription, particularly in the non-institutional investor (NII) segment at 24.43 times, reflects the keen interest from various investor categories. Additionally, the retail portion witnessed a robust subscription of 11.43 times, further emphasizing the widespread demand for Innova Captab shares.
As the three-day bidding process concludes, the IPO’s success not only highlights the company’s appeal but also signifies investors’ confidence in the pharmaceutical sector’s growth potential. Innova Captab’s IPO is poised to make a significant mark in the market, driven by strong subscription numbers and positive market sentiment.
Innova Captab IPO details
The offering is a combination of a fresh issue of equity shares, totaling ₹320 crore, and an offer-for-sale (OFS) involving up to 55,80,357 equity shares by the promoter and selling shareholders. Each equity share holds a face value of ₹10.
The OFS encompasses 1,953,125 equity shares from both Manoj Kumar Lohariwala and Vinay Kumar Lohariwala, collectively referred to as the “Promoter Selling Shareholders,” and 1,674,107 equity shares from Gian Parkash Aggarwal, designated as the “Other Selling Shareholder.”
The net proceeds from the fresh issue will be allocated towards the partial or full repayment of specific outstanding loans and meeting working capital requirements.
Acting as the registrar for the Innova Captab IPO is Kfin Technologies Limited, while ICICI Securities Limited and JM Financial Limited serve as the book running lead managers.
