Innova Captab IPO closes today: GMP, review, subscription status, other key details, should you apply or not?

Innova Captab IPO opened for subscription on Thursday, December 21, and will close today (Tuesday, December 26). Innova Captab IPO subscription status was 3.54 times on day 2, and 1.41 times on day 1. Innova Captab IPO price band has been set in the range of ₹426 to ₹448 per equity share of face value of ₹10. Innova Captab IPO lot size is 33 equity shares and in multiples of 33 equity shares thereafter. Innova Captab Limited raised ₹171 crore from anchor investors on Wednesday, December 20. 

Innova Captab IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.

An integrated pharmaceutical company based in India, Innova Captab is involved in all aspects of the pharmaceutical value chain, including product development, manufacturing, marketing, distribution, and exports.

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Innova Captab IPO details

A fresh issuance of equity shares up to ₹320 crore and an offer-for-sale (OFS) of up to 55,80,357 equity shares by the promoter and selling shareholders make up the offer of face value of ₹10 per equity share.

The OFS consists of the following: up to 1,953,125 equity shares held by Manoj Kumar Lohariwala; up to 1,953,125 equity shares held by Vinay Kumar Lohariwala (collectively, the “Promoter Selling Shareholders"); and up to 1,674,107 equity shares held by Gian Parkash Aggarwal (collectively, the “Other Selling Shareholder" and the “Selling Shareholders" in conjunction with the Promoter Selling Shareholders, the “Selling Shareholders"); this offer for the sale of equity shares by the Selling Shareholders is referred to as the “Offer for Sale ".

Also Read: Innova Captab IPO: Issue gets booked 1.41 times on day 1, GMP steady today; should you subscribe?

The company proposes to utilise the net proceeds from the fresh issue towards repayment and / or prepayment in part or in full, of certain outstanding loans, funding the working capital requirements.

The registrar for the Innova Captab IPO is Kfin Technologies Limited, and the book running lead managers are ICICI Securities Limited and JM Financial Limited.

Also Read: Innova Captab IPO: Issue booked 3.54 times on day 2, retail portion subscribed 5.02x; GMP steady

Innova Captab IPO GMP today

Innova IPO GMP today or grey market premium is +140, similar to the previous session. This indicates Innova Captab share price were trading at a premium of ₹140 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Innova Captab share price is ₹588 apiece, which is 31.25% higher than the IPO price of ₹448.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: Innova Captab IPO: Here are 10 things to know before you subscribe to the issue

Innova Captab IPO review

SBI Securities 

“The company is valued at FY23 P/E multiple of 37.7x based on the upper price band on post-issue capital. It is an integrated pharmaceutical company in India with a presence across the pharmaceutical value chain. The recently acquired Sharon Bio Medicine Ltd will add many synergies to the business. The company’s revenue and PAT has witnessed a healthy CAGR growth of 50% and 40% respectively during FY21-FY23. We recommend investors to subscribe to the issue for long-term investment horizon,” the brokerage said.

Also Read: Innova Captab IPO Day 1: GMP, subscription status, price, review, other details. Apply or not?

Marwadi Financial Services

The brokerage stated that given the FY23/FY24-Annualized EPS of Rs. 11.87/12.30 on a post-issue basis, the company will list at a P/E of 37.73x/36.43x with a market cap of Rs. 25,637 million. In contrast, peers Torrent Pharmaceuticals Ltd., Laurus Labs Ltd., Ajanta Pharma Ltd., J.B. Chemicals and Pharmaceuticals Ltd., NATCO Pharma Ltd., Eris Lifesciences Ltd., Indoco Remedies Ltd., Suven Pharmaceuticals Ltd., and Windlas Biotech Ltd. are trading at a P/E of 54.1x, 59.7x, 35.9x, 46.8x, 12.4x, 31.8x, 33.3x, 41.0x, and 18.5x.

“We assign “Subscribe” rating to this IPO as the company has a leading presence and one of the fastest-growing CDMOs in the Indian pharmaceutical formulations market along with consistent financial performance. Also, it is available at a reasonable valuation as compared to its peers,” the brokerage said. 

Also Read: Innova Captab IPO: December 26 is the last day to subscribe; Here are key risks to know

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.