Innova Captab IPO subscribed over 3x times on day 2 so far; GMP falls sharply

The initial public offering (IPO) of Innova Captab continued to witness a decent buying intested from the investors during the second day of the bidding process. The issue, which had opened for bidding on Thursday, December 21, was subscribed 1.41 times on day one.

Innova Captab is raising a total of Rs 570 crore via its initial stake sale in the fixed price band of Rs 426-448 per share in the lot size of 33 equity shares and its multiples thereof. Of the block, the pharmaceutical company is raising Rs 570 crore via fresh issue, while the promoters and other shareholders are selling 55,80,357 equity shares via OFS.

According to the data, the investors made bids for 2,76,75,252 equity shares, or 3.05 times, compared to the 90,78,010 equity shares offered for the subscription by 3.25 pm on Friday, December 22. The three-day bidding for the issue will conclude on Tuesday. December 26.

The portion reserved for retail was booked 4.43 times, while the allocation for non-institutional investors (NIIs) was subscribed 2.38 times. The portion for qualified institutional bidders (QIBs) was booked 1.08 times as of the same time.

Incorporated in January 2005, Innova Captab is a pharmaceutical company operating in three business segments. It provides contract development and manufacturing services to Indian pharmaceutical companies. It also has a domestic business dealing in branded generics. Furthermore, the company has an international business that deals in branded generics.

The company's product portfolio includes tablets, capsules, dry syrups, dry powder injections, ointments and liquid medicines. In the financial year 2023 and the three months ended June 30, 2023, the company produced and sold more than 600 different types of generics. Innova Captab exported its branded generic products to 20 and 16 countries during the period.

Innova Captab's premium in the grey market has plunged more than 50 per cent amid the rising volatility. Last heard, It was commanding a grey market premium of Rs 10 per share, signaling an upside of 22 per cent compared to the upper end of the price band. However, the premium in the unofficial market was about Rs 210-215 ahead of the bidding.

ICICI Securities and JM Financial are the book running lead managers of the Innova Captab IPO, while Kfin Technologies is the registrar for the issue. Innova Captab has mobilised Rs 171 crore from anchor investors by allocating 38,16,963 equity shares at a price of Rs 448 per share.
 

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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