The stock of the pharmaceutical company listed 1 per cent higher at Rs 452 on the National Stock Exchange (NSE).
It hit a low of Rs 452 in intra-day trade. A combined around 7.3 million equity shares had changed hands on the NSE and BSE.
The category for Qualified Institutional Buyers (QIBs) received 116.73 times subscription.
The category for Non-Institutional Investors (NII) was subscribed 64.95 times; while the quota of the Retail Individual Investors (RIIs) received 17.75 times subscription.
Innova Captab is an integrated pharmaceutical company with a presence across the pharmaceuticals value chain, including research and development, manufacturing, drug distribution, marketing, and exports.
The company also has products using new technology such as Nano technology.
It has 14 of the top 15 Indian pharma companies as its customers for its CDMO services.
Its branded generics business is also growing at a strong pace in line with increased demand for branded generics products in India and overseas markets as well as its increased capacity for the same.
The company has acquired 100 per cent of the Sharon Bio – Medicine under the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC) in Q1FY24 for Rs 195.4 crore.
The acquisition has been made at 12.5x of Sharon’s EBITDA for FY23, which looks slightly expensive. But given the likely synergies, incremental revenue and profitability is likely, said analysts at KRChoksey Shares in an IPO note.
The increased expansion over the next 2 years envisaged an increase in demand and leveraging the customer relationships for domestic branded generics; international generics growth in Sharon Bio Medicine and taxation benefits from the new plant will boost earnings over the next few years, said analysts at Reliance Securities.
First Published: Dec 29 2023 | 10:24 AM IST