Comments: 0 | Likes: 0
INITIAL PUBLIC OFFERNING | INNOVA CAPTAB LIMITED
On 14th December, 2023, ‘Innova Captab Limited’ officially issued its Prospectus mentioning the important details regarding its recent Initial Public Offering (hereinafter referred as IPO) which will start from Wednesday, 20 December, 2023 for the Anchor Bids, from Thursday 21 December, 2023 IPO will be issued to the public and closes on Tuesday, 26 December, 2023. In this article we will look at some Important Financial Details of the company and the IPO, which investors need to consider before investing in a right company
INITIAL PUBLIC OFFERNING | INNOVA CAPTAB LIMITED
On 14th December, 2023, ‘Innova Captab Limited’ officially issued its Prospectus mentioning the important details regarding its recent Initial Public Offering (hereinafter referred as IPO) which will start from Wednesday, 20 December, 2023 for the Anchor Bids, from Thursday 21 December, 2023 IPO will be issued to the public and closes on Tuesday, 26 December, 2023. In this article we will look at some Important Financial Details of the company and the IPO, which investors need to consider before investing in a right company.
ABOUT THE COMPANY
As per the details of the company present on its official website, the company was incorporated in the year 2006 by establishing a manufacturing plant in Baddi, Himachal Pradesh and has grown since its inception and marking the revenue of Rs. 500 million in the year 2013. The Company is primarily involved in the pharmaceutical business across India, the company provides a pharma chain of research and development, manufacturing, drug distribution and marketing and exports of the pharmaceutical products.
BUSINESS OPERATIONS
The company is primarily involved in the business operation of pharmaceutical products, the company works together with other pharma-companies in the process of research and development. And the company also posses the license of manufacturing pharmaceutical products with the standard of WHO, GMP, EU-GMP registration. The company majorly deals with the manufacturing, drug distribution and marketing and exports of the pharmaceutical products. The company has successfully worked with other major companies such as Mankind, Lupin, Zuventus, etc. The company’s product ranges int the following market line.
BOARD OF DIRECTOR AND PROMOTERS OF THE COMPANY
The company’s management includes the following members-
01. Mr. Manoj Kumar Lohariwala as Chairman and whole time Director of the company.
02. Mr. Vinay Kumar Lohariwala as Managing Director of the company.
03. Mr. Jayant Vasudeo Rao as whole time Director of the company.
04. Mr. Mahender Korthiwada, Mr. Sudhir Kumar Bassi, Mr. Shirish Gundopant Belapure Mrs. Priyanka Dixit Sibal acting as Non-Executive Independent Directors of the company.
05. Mr. Archit Aggarwal as Non-Executive Director of the company.
The Promoter group of the company involves Mr. Manoj Kumar Lohariwala, Mr. Vinay Kumar Lohariwala, and Mr. Gian Parkash Aggarwal in the company.
KEY FINANCIAL DETAILS OF THE COMPANY
In the fiscal year 2022-23, the Company has achieved a noteworthy revenue from its operations of Rs. 9,355.78 (in millions), while securing a profit of Rs. 917.95 (in millions), a substantial improvement compared to the preceding year when they incurred a profit of Rs. 857.20 (in millions) in FY 2021-2022. Furthermore, as of June 30, 2023, the company has sustained its positive performance, with a profit of Rs. 245.99 (in millions) for the current year.
To make a wise investment choice, we will delve into various financial ratios for a comprehensive assessment of the company's financial condition and performance.
|
RATIO NAME |
FY 2022-23 |
FY 2021-22 |
|
CURRENT RATIO |
1.52 |
1.23 |
|
RETURN ON EQUITY |
40.50 |
38.09 |
|
DEBT EQUITY RATIO |
1.32 |
0.95 |
|
NET PROFIT (in %) |
9.04 |
7.99 |
DETAILS OF THE IPO
The company is offering Fresh Equity Shares worth Rs. 3,200 million which has been priced at Rs. 426 to Rs. 448 per share. Additionally, company’s promoter group are also selling 5,580,357 Equity Shares. In total the offer is worth Rs. 5,578 million.
Some Important details with respect to the Application Size for Qualified Institutional Bidder and Non-Institutional Investor has been Summarised in the following table:
|
Particulars |
Net Issue to Public |
|
Application Size |
For S- HNI: Minimum- A minimum lot of 14 i.e., 462 Equity Shares. Maximum- A maximum lot of 67 i.e., 2,211 Equity Shares. For B- NII: Minimum- A minimum lot of 68 i.e., 2,244 Equity Shares. For Retail Individuals: Minimum- 33 Equity Shares at an Issue price of Rs. 426 to 448 each. Maximum- 13 Lots i.e., 429 Equity Shares. |
OBJECTIVES OF THE IPO
The objective of the issue of the IPO is for (i) the Repayment of the outstanding loans of the Company; (ii) Investment in their subsidiary company ‘Univentis Medicare Limited’ and its repayment of outstanding loan; (iii) Meeting the working capital expenses; (iv) meeting the general corporate expenses of the company.
RISKS INVOLVED
In addition, the company faces severe risks in a variety of operational areas, which might have an influence on its financial stability, market positioning, and operational efficiency.
1. Highly Competitive Market: The firm faces fierce competition in the outsourced pharmaceutical manufacturing and CDMO services industries. The industry's fragmentation, with several participants, reduces negotiating strength, making it difficult to secure contracts and maintain profitability.
2. Uncertainty Post-Acquisition: The recent acquisition of Sharon raises concerns about realising the projected benefits. The uncertainty around the realisation of promised synergies or efficiencies from the purchase may have a negative impact on the company's overall performance, cash flow, and financial situation.
3. Manufacturing Risks: Because the company is primarily reliant on manufacturing facilities, it is vulnerable to operational risks such as equipment failure, industrial accidents, weather-related interruptions, and natural catastrophes. Any major failure or breakdown might result in costly repairs, delays, or entire shutdowns, affecting operations and financial status.
4. Dependence on CDMO clients: The firm faces risks due to its reliance on a small number of CDMO clients. Reduced or negative changes in these ties might lead to a loss in business, hurting financial stability and operational success.
5. Concerns about Quality Compliance: Noncompliance with customer-specified quality criteria and technical specifications may result in lost revenue, order cancellations, or warranty claims. Failure to achieve strict quality standards might result in product recalls, consumer rejection, and financial obligations, all of which could have a negative influence on the company's reputation, and its financial standing.
IMPORTANT DATES
|
EVENTS |
DATES |
|
Bid/Issue Opening |
Thursday, December 21, 2023 |
|
Bid/Issue Closing |
Tuesday, December 26, 2023 |
|
Finalization of Basis of Allotment with the Designated Stock Exchange |
On or about Wednesday, December 27, 2023 |
|
Initiation of Allotment / Refunds / Unblocking of Funds from ASBA Account or UPI ID linked bank account |
On or about Thursday, December 28, 2023 |
|
Credit of Equity Shares to Demat accounts of Allottees |
On or about Thursday, December 28, 2023 |
|
Commencement of trading of the Equity Shares on the Stock Exchange |
On or about Friday, December 29, 2023 |
I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.
I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.
Articles
Comments
