Innova Captab grey market premium at 7% ahead of stock market listing today

The initial public offering (IPO) of Innova Captab, which was open for subscription between December 21 and December 26, witnessed robust demand from investors, garnering applications for 50,16,58,245 shares compared to the 90,78,010 shares on offer. This resulted in an oversubscription by 55.26 times.

Innova Captab grey market premium at 7% ahead of stock market listing today

Innova Captab Ltd, a company in the pharmaceutical sector, is preparing for its stock market debut on Friday. Recently, there has been a noticeable decrease in its grey market premium (GMP), now standing at Rs 32 per share. This indicates an anticipated debut price around Rs 480, reflecting a 7% gain over the original issue price of Rs 448.

The response to Innova Captab’s IPO was impressive across different investor categories. The portion set aside for qualified institutional buyers was filled 116.73 times, while non-institutional investors showed a 64.94 times oversubscription. Retail investors also demonstrated keen interest, subscribing 17.15 times the allotted quota. However, market fluctuations have impacted the GMP, which has dropped from a high of Rs 160 to Rs 32 per share.

As a competitor of companies like Torrent Pharma and Laurus Labs Ltd, Innova Captab is a comprehensive pharmaceutical company involved in various aspects of the pharma value chain. This includes research and development, manufacturing, drug distribution and marketing, and international operations.

Innova Captab’s operations encompass a CDMO (Contract Development and Manufacturing Organization) segment that offers research, product development, and manufacturing services to domestic pharmaceutical firms. It also has a branded generics business both domestically and internationally. According to CRISIL, Innova Captab was ranked third among domestic CDMO players in terms of revenue and net profit margin in FY22.

For the quarter ending June 30, Innova Captab served 133 CDMO clients, producing over 600 generic products. These products are marketed under its own brand through a network of about 5,000 distributors and stockists, and more than 150,000 retail pharmacies. Additionally, Innova Captab exports branded generic products to 16 countries.

The company operates a dedicated research laboratory and pilot facilities in Baddi, Himachal Pradesh, accredited by the Department of Scientific and Industrial Research, Ministry of Science and Technology. On a restated consolidated basis, Innova Captab reported sales of 2,467 CDMO products in FY23, a significant increase of 131.43% from 1,066 products in FY21.