Innova Captab likely to file for Rs 900-crore IPO soon

Drugmaker Innova Captab will soon file a draft red herring prospectus (DRHP) with market regulator Sebi for a ₹900-crore initial public offering (IPO), people in the know said. The Mumbai-based company is engaged in contract development and manufacturing of generic formulations. It is looking to raise ₹700-900 crore, according to the people cited earlier, and it will have a fresh issue and offer for sale component.

The company has appointed

and as bankers to the issue, they said. Innova did not reply to ET’s request seeking a comment.

The company has considerable presence in the acute and chronic therapeutics segment, especially in cardio metabolic, respiratory, neuroscience, infectious diseases and vaccines. It is present across the entire pharma value chain that includes research and development, manufacturing, drug distribution, marketing and exports.

The drugmaker has two WHO GMP certified manufacturing facilities in Baddi and also has a CSIR approved R&D facility.

Innova was founded as a partnership firm in 2005 by Gian Prakash Aggarwal, Manoj Kumar Lohariwala and Vinay Kumar Lohariwala. Thereafter, in March 2021, it took over the partnership firm on a slump sale basis which was funded through term loans.

A

report in April 2022 on Innova indicated a revision in its rating from BBB+ to A- for its long-term bank facilities, and A2+ from A2 for its short-term facilities. The long-term debt to equity ratio improved from 0.16X to 0.08X as on March 31, 2021.