Innova Captab Limited

About Innova Captab Limited  Incorporated in 2005, Innova Captab Limited is an integrated pharmaceutical company in India. It primarily operates businesses like contract manufacturing that provide manufacturing services to pharmaceutical companies, a domestic branded generics business and an international branded generics business.  In FY23, the company had 182 CDMO customers and manufactured a diverse generics product portfolio of over 600 products. These products were distributed by ~5,000 distributors, stockists and over 1,50,000 retail pharmacies in India. It also exported its branded generic products to 20 countries in FY23.  It has two manufacturing facilities in Baddi, Himachal Pradesh and plans for a new facility in Jammu. It has a dedicated R&D laboratory and pilot equipment located at its manufacturing facility in Baddi, Himachal Pradesh, recognized by the Department of Scientific and Industrial Research (DSIR). It employs a team of 29 scientists and engineers as of 31 October 2021.  Under its CDMO business, some of its key customers include Cipla, Glenmark Pharmaceuticals, Wockhardt, Corona Remedies, Emcure Pharmaceuticals, Lupin, Intas Pharmaceuticals, Leeford Healthcare, Medley Pharmaceuticals, Cachet Pharmaceuticals and more. Under its branded generic business, it develops, manufactures and distributes generic formulation products under its own brand names through online and offline channels.  Between FY21 and FY23, the company saw a CAGR rise of 31% in its revenue from operations and 25% in its profit. Moreover, the Indian domestic formulation market is expected to grow at a 9-10% CAGR between FY23 and FY28 which could benefit the company.  And now, Innova Captab Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised to repay borrowings, fund capital expenditure, invest in its subsidiary and for general corporate purposes. Its shares will be listed on the NSE and the BSE.  Here are key details about the Innova Captab Limited IPO:     Company Name  Innova Captab Limited   Company Type  Private    Company Established On  2005   Innova Captab Limited IPO Opening Date  21st December 2023    Innova Captab Limited IPO Closing Date  26th December 2023   Innova Captab Limited IPO Allotment Status  27th December 2023    Credit of Shares to the Demat Account  28th December 2023   Innova Captab Limited IPO Listing Date  29th December 2023    Innova Captab Limited IPO Face Value  ₹10 per share   Innova Captab Limited IPO Lot Size  33 shares    Innova Captab Limited IPO Issue Size  Approx ₹570 crore   Innova Captab Limited IPO to be Listed on  BSE, NSE    Innova Captab Limited IPO Price band  ₹426 – ₹448 per share        Financial snapshot     Particulars  FY21  FY22  FY23    Revenue  ₹ 410 crore  ₹ 800 crore  ₹ 926 crore    Net Profit  ₹ 34.5 crore  ₹ 63.9 crore  ₹ 67.9 crore               Here’s a quick look at Innova Captab Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   The integrated pharmaceutical company, which has presence across the value chain including research and development, manufacturing, drug distribution and marketing and exports.  Operates in a growing industry as the Indian contract development and manufacturing organisation (CDMO) market is expected to grow at a CAGR of 12-14% between FY23 and FY28.  Well established relationships with its marquee CDMO customer base 182 as of FY23.  Highly efficient operations with the production of 8,191 million tablets and 2,472 million capsules in FY23.  Rapidly growing generics businesses, which makes it well-positioned to grow as branded generics contributed to 95% of the overall generics industry in India as of FY23.  Consistent financial performance with EBITDA margins of 13%, 12% and 13% in FY21, FY22 and FY23 respectively.   Risks and threats   Operates in a highly competitive market with 300 to 400 organised players and approximately 15,000 unorganised players in the domestic formulations industry.  Dependent on its top 10 customers, they accounted for 54% of its total revenue from CDMO operations in FY23.  Has incurred significant capital expenditure in the last three years, which makes up ₹11 crore, ₹76 crore and ₹26 crore in FY21, FY22 and FY23 respectively.  Dependence on China, China SEZ and Hong Kong for raw material supplies exposes it to political, economic and social conditions in greater China.  Subject to extensive regulation.  The company is exposed to the risk associated with reforms in the healthcare industry and the uncertainty associated with pharmaceutical pricing, reimbursement and related matters.  Inability to collect receivables and default in payment as it had total trade receivables of ₹265 crore in FY23, representing over 28% of total revenue.            Innova Captab Limited IPO details  |Innova Captab Limited IPO date  According to the offer document filed by the company with the SEBI, the Innova Captab IPO’s opening date – in other words, the Innova Captab IPO launch date – will be 21st December 2023. The Innova Captab IPO closing date is 26th December 2023. After this, investors will be updated about the allotment status on 27th December 2023.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 28th December 2023. The Innova Captab IPO listing date is 29th December 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |Innova Captab Limited IPO Price Band  The IPO is an offer for sale as well as a fresh issue. The Innova Captab IPO price band has been set between ₹426 and ₹448 per share. Interested investors can choose a price within this band to apply for the IPO.  The Innova Captab IPO listing price will be determined on 29th December 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.  .|Innova Captab Limited IPO Lot size  The Innova Captab IPO details have been declared. The Innova Captab IPO lot size is set at 33 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Innova Captab IPO issue size is approx ₹570 crore.           How to pre-apply for the Innova Captab Limited IPO?  You can pre-apply for the Innova Captab Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Innova Captab Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Innova Captab Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Innova Captab Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Innova Captab Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Innova Captab Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Innova Captab LimitedIPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Innova Captab Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Innova Captab Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Innova Captab Limited IPO  To apply for the Innova Captab Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Innova Captab Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Innova Captab Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.