Innova Captab IPO


Innova Captab IPO

Parent Organisation – Innova Captab Limited

Founded – 2005

Managing Director – Mr. Vinay Kumar Lohariwala

Bidding Dates         Min. Investment       Lot size  
21 Dec – 26 Dec ‘23          14,058                         33   
Price Range                  Issue Size                  IPO Doc
426 – 448                         570.00CrPDF

IPO Details

About

Innova captab is a pharma company involved in research, development, manufacturing, drug distribution, marketing and exports.

The company started its journey by providing contract development and manufacturing organization (CDMO) services to various Indian pharmaceutical companies along with domestic and international branded generic businesses.

It has two manufacturing facilities at Baddi in Himachal Pradesh and is planning a new facility in Jammu.

Innova Captab has expanded its portfolio to over 600 different generic products and sold under its own brands in India through a network of 5000 distributors and 1,50,000 retail pharmacies.

Strengths and Risks

Strengths

+The company has a diverse range of over 600 products in various therapeutic careers, including complex formulations such as tablets in modified and sustained – release forms and capsules.

This wide-ranging portfolio enables them to cater a wide range of healthcare needs The company brands generic products for many countries. Offering a wide range of products from oral solids to injectables and utilizing new technologies such as nanotechnology, Innova Captab caters to both acute and chronic treatment areas.

+Innova captab emphasizes robust in-house R&D, which will help the CDMO attract customers and grow its branded generic portfolio. They have a dedicated R&D facility recognized by the Department of Scientific and Industrial Research, India.

+The company maintains state-of-the-art manufacturing facilities that are certified for good manufacturing practices.

+Innova Captab has expanded its international presence, exporting branded generics to many countries.

+According to a CRISIL report, one of the fastest growing CDMOs in the Indian pharmaceutical formulations market.

+In financial year 2023, the company has 182 CDMO customers, including Cipla, Glenmark Pharma, Wockhardt, Corona Remedies, Emcure Pharma, Lupine and Mankind Pharma.

+According to CRISIL Research, the company ranks 3rd among its peers in terms of finished tablet and capsules manufacturing capacity in India.

Risks

– Innova captab’s restated consolidated financial information may not be consistent across periods and pro forma condensed consolidated financial information.

It is not prepared in the accordance of generally accepted accounting principles.

It may fail to provide an accurate representation of the Company’s operations or financial condition.

– The recent acquisition of Sharon adds uncertainty to the Innova Captab.

They are yet to ascertain whether the expected benefits of this acquisition have materialized, posing a potential risk to their business stability and financial results.

– Reliance on Innova Captabs by some contract development and manufacturing organization customers brings risk.

A decline in these customers or the inability to maintain these relationships could significantly affect their business operations and financial health.

– The Company has incurred significant capital expenditures in recent years and will require significant financing for ongoing operations and planned expenditures.

Any challenges in securing finance can hamper their growth and profitability.

– Innova Captab’s reliance on China, China SEZ and Hong Kong for raw materials exposes risk associated with political, economic and social conditions among these factors.

– Requirements to transfer, obtain, renew or maintain statutory and regulatory approvals, licenses and approvals for Sharon’s business pose a risk.

Delays or failures in this compliance could adversely affect innovacaptab’s operations and financial condition.

– Innova captab’s related party transactions history, which may continue and raises the concerns about the potential conflicts.

A significant portion of their revenue comes from these transactions, which affect the interests of the shareholders.

– Reliance on third-party clinical trials introduces risk.

Any failure by these parties to meet regulatory standards could delay regulatory approvals that could adversely affect the Company’s business and financial condition.

– The company’s expansion plans, including the construction of new facilities in Jammu, are at risk of unexpected delays and cost overruns.

These affect their growth strategy and financial stability.

– Innova captab must navigate different international regulations for product exports, adding complexity and risk.

Failure with these regulations could have adverse effects on their business and the financial results.

– Innova is exposed to the risk of non-payment of a significant portion of the Captab sales or on open credit.

 An increase in customers’ bad debts or defaults affects their profitability and the cash flows.

– The location of their manufacturing and R&B facilities in Himachal Pradesh exposes Innova Captab to certain geographic risk, such as labor unrest and natural calamities, which may disrupt the operations.

Subscription Status – As on December 2023

Qualified institutional buyers            1.08x
Non-Institutional Investors                3.26x
Retail individual investors                 5.00x
Total    3.53x

Company Financials

Innova Captab IPO

Innova Captab IPO

Innova Captab IPO

Application Details

Apply as           Price Band        Apply upto
Regular426 – 448                2 Lakh
High Net worth    426 – 448                 2 – 5 Lakh
Individual

For Innova Captab IPO, eligible investors can apply as

Regular.


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