Innova Captab shares surge over 14% after mild listing gains; details here

Innova Captab Ltd made a positive debut on Dalal street on Friday, with its shares listed at Rs 456.10, a 1.81 per cent premium over the issue price of Rs 448 per share on BSE. Later, the stock jumped 14.23 per cent to hit a day high of Rs 521 over its opening price.

Ahead of its listing, Innova Captab shares were commanding a grey market premium of Rs 32 per equity share, hinting towards mild gains at the debut. Grey market is an unofficial platform for trading in IPO shares that usually gives an indication about the listing price.

Innova Captab's IPO was open for bidding between December 21 and December 26. The issue was sold in the range of Rs 426-448 apiece with a lot size of 33 equity shares. The company raised a total of Rs 570 crore, including a fresh share sale of Rs 320 crore and an offer-for-sale (OFS) of up to 55,80,357 equity shares.

The issue was overall subscribed 55.26 times backed by strong bidding from the qualified institutional buyers (QIBs). The QIB portion was booked 116.73 times. The category for non-institutional investors was subscribed 64.95 times. And, the quota reserved for retail investors was booked 17.15 times.

Innova Captab, which has Torrent Pharma and Laurus Labs Ltd among its peers, is a domestic integrated pharmaceutical company, with a presence across pharmaceuticals value chain including research and development, manufacturing, drug distribution and marketing and exports.

For the quarter ended June 30, Innova Captab had 133 CDMO customers. It manufactured over 600 generics products, marketing them under its own brands through a developed network of approximately 5,000 distributors. Innova Captab exported branded generic products to 16 countries.

It has a dedicated reserach laboratory and pilot equipment in Baddi, Himachal Pradesh, recognised by Department of Scientific and Industrial Research, Ministry of Science and Technology. On a consolidated basis, Innova Captab sold 2,467 CDMO products in FY23.

Post-listing view

"Innova Captab possesses its core strengths, including a strong market position, robust financials and strategic growth initiatives. However, the flat debut highlights the potential risks associated with the highly competitive market, regulatory environment and currency fluctuations. Given the uncertain outlook, a cautious approach is warranted and investors may exit their position. However, those who want to hold it should maintain a stop loss at the issue price," said Shivani Nyati, Head of Wealth at Swastika Investmart.

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