Home / Markets / Ipo /  CX Partners to make partial exit as Veeda files papers for IPO

Veeda Clinical Research Ltd on Wednesday draft papers for a 831.6 crore initial public offering (IPO) that will see private equity firm CX Partners make a partial exit.

The IPO consists of a fresh issue of 331.60 crore and an offer for sale (OFS) of 500 crore by shareholders and promoters.

The OFS comprises a 8.08 crore sale by CX Alternative Investment Fund, 90.19 crore sale by Arabelle Financial Services Ltd, 259.77 crore sale by Bondway Investments Inc., 4 lakh sale by Stevey International Corporation, and a 141.93 crore sale by Basil Pvt. Ltd.

CX Alternative Investment Fund, Bondway, Basil, and Arabelle are all CX Partners entities. CX Alternative Investment Fund holds 2.98% stake, Arabelle 4.51% stake, Bondway 28.36% stake, Stevey 0.002% stake, and Basil 52.42% stake.

SBI Capital Markets, ICICI Securities, JM Financial, and Systematix Corporate Services are book running managers to the issue.

Of the proceeds from the issue, 28.71 crore will be used to repay debt incurred by Veeda’s arm Bioneeds, 33 crore for capital expenditure, 45 crore for investment in Veeda’s arm for financing capital requirements, 75 crore for further acquisition of shares of Bioneeds, 17 crore for acquisition of shares of Ingenuity BioSciences, and 50 crore for working capital requirements.

In July, Veeda bought a 50.10% interest in Bioneeds, which is a preclinical contract research organization providing discovery, development, and regulatory services to the pharmaceutical industry.

The investment gave the firm access to two facilities in Bengaluru with 99 exclusive experiment rooms together with self-contained chemistry, biopharma, and analytical laboratories. The firm intends to get 100% stake in Bioneeds.

As of March 2021, Bioneeds had total secured borrowings of 43.78 crore and total unsecured borrowings of 26.66 crore. Veeda, headquartered in Ahmedabad, offers a range of early and late-phase bioequivalence studies and clinical trials to generic and innovator pharmaceutical companies.


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