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 Innova Captab Limited (“Company”) is an integrated pharmaceutical company in India with a presence across the pharmaceuticals value chain including research and development, manufacturing, drug distribution and marketing and exports, has fixed the price band at ?426 to ?448 per Equity Share for its maiden initial public offer.  The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Thursday, December 21, 2023, for subscription and close on Tuesday, December 26, 2023. Investors can bid for a minimum of 33 Equity Shares and in multiples of 33 Equity Shares thereafter.

The Offer of Equity Shares with a face value of ?10 consists of a fresh issue of Equity Shares worth up to ? 3,200.00 million and an Offer for Sale (OFS) up to 5,580,357 Equity Shares, which comprises of up to 1,953,125 Equity Shares by Manoj Kumar Lohariwala, up to 1,953,125 Equity Shares by Vinay Kumar Lohariwala (Together with Manoj Kumar Lohariwala, the “Promoter Selling Shareholders”) and up to 1,674,107 Equity Shares by Gian Parkash Aggarwal (“the “Other Selling Shareholder” and together with the Promoter Selling Shareholders, the “Selling Shareholders”, and such offer for sale of Equity Shares by the Selling Shareholders, the “Offer for Sale “).

Innova Captab Limited is an integrated pharmaceutical company in India with a presence across the pharmaceuticals value chain including research and development, manufacturing, drug distribution and marketing and exports. Its business includes a contract development and manufacturing organization (“CDMO”) business providing research, product development and manufacturing services to Indian pharmaceutical companies, a domestic branded generics business and an international branded generics business. In Fiscal 2022, among Indian formulation CDMO players considered in the CRISIL Report, it recorded the third highest operating revenue, the second highest operating profit margin, the third highest net profit margin and the second highest return on capital employed. (Source: CRISIL Report, October 2023).

For the three months ended June 30, 2023, it had 133 CDMO customers, in Fiscal 2023 and in the three months ended June 30, 2023, it manufactured a diverse generics product portfolio of over 600 products and market them under its own brands in the Indian market through a developed network of approximately 5,000 distributors and stockists and over 150,000 retail pharmacies and in the three months ended June 30, 2023, it exported branded generic products to 16 countries. It has a dedicated research and development (“R&D”) laboratory and pilot equipment located at its manufacturing facility in Baddi, Himachal Pradesh, which is recognized by Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India (“DSIR”). On a restated consolidated basis, the number of CDMO products it sold was 2,467 in Fiscal 2023 up 131.43% from 1,066 in Fiscal 2021.

As per the Restated Consolidated Financial Information The Company’s revenue from operations grew 15.72% to ? 9,263.80 million for Fiscal 2023 from ? 8,005.26 million for Fiscal 2022, primarily due to increase in revenue from sale of goods and services in India and outside India and profit grew 6.26% to ? 679.54 million for Fiscal 2023 from ? 639.53 million for Fiscal 2022.  

For the three months ended June 30, 2023, as per its Restated Consolidated Financial Information revenue from operations stood at ? 2,332.43 million and profit for the three months ended June 30, 2023 stood at  ? 175.93 million.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.

ICICI Securities Limited, and JM Financial Limited are the book running lead managers and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE. For the purposes of the Offer, NSE is the Designated Stock Exchange

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