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INNOVA CAPTAB LTD IPO

IPO Details

-
-
33 Shares
₹ 14,784
₹ 426 – 448
₹ Up to 570 Cr

Issue timeline

  • -
  • 27-Dec-2023
  • 28-Dec-2023
  • 28-Dec-2023
  • 29-Dec-2023

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

About Company

- An integrated pharmaceutical company in India with a presence across the pharmaceuticals value chain including research and development, manufacturing, drug distribution and marketing and exports

- Their business includes (i) a contract development and manufacturing organization (“CDMO”) business providing manufacturing services to Indian pharmaceutical companies, (ii) a domestic branded generics business and (iii) an international branded generics business.

Strengths & Risks

Strengths (3)

One of the fastest growing CDMOs in the Indian pharmaceutical formulations market
In Fiscal 2022, among Indian formulation CDMO players considered in the CRISIL Report, they recorded the third highest operating revenue, the second highest operating profit margin, the third highest net profit margin and the second highest return on capital employed. (Source: CRISIL Report, October 2023 &Company RHP)

Risks (2)

They operate in a market that is highly competitive
Their competition in the CDMO services and products includes full-service pharmaceutical outsourcing or CDMO companies; contract manufacturers focusing on a limited number of dosage forms; contract manufacturers providing multiple dosage forms; and large pharmaceutical companies offering third-party manufacturing services to fill their excess capacity.If their competitors gain significant market share , then their business, results of operations and financial condition could be adversely affected.(Source: Company RHP)

  • One of the fastest growing CDMOs in the Indian pharmaceutical formulations market
    In Fiscal 2022, among Indian formulation CDMO players considered in the CRISIL Report, they recorded the third highest operating revenue, the second highest operating profit margin, the third highest net profit margin and the second highest return on capital employed. (Source: CRISIL Report, October 2023 &Company RHP)

  • Well established relationships with marquee CDMO customer base
    In their CDMO business, they have developed strong relationships across the Indian pharmaceutical industry. In Fiscal 2023, they had 182 CDMO customers. They typically enter into long-term CDMO agreements ranging mostly between two to five years with their customers resulting in predictable and stable cash flows(Source: Company RHP)

  • Highly efficient operations, including world class manufacturing facilities and supply chain
    They have two manufacturing facilities in Baddi, Himachal Pradesh. Their facilities produce tablets, capsules, dry syrups, dry powder injections, ointments and liquid orals. According to CRISIL Research, they were ranked third among their peers in terms of finished tablet and capsule manufacturing capacity in India.  (Source: CRISIL Report, October 2023 &Company RHP)

  • They operate in a market that is highly competitive
    Their competition in the CDMO services and products includes full-service pharmaceutical outsourcing or CDMO companies; contract manufacturers focusing on a limited number of dosage forms; contract manufacturers providing multiple dosage forms; and large pharmaceutical companies offering third-party manufacturing services to fill their excess capacity.If their competitors gain significant market share , then their business, results of operations and financial condition could be adversely affected.(Source: Company RHP)

  • Business is dependent and will continue to depend on their manufacturing facilities
    They have two manufacturing facilities in Baddi, Himachal Pradesh. Their business is dependent upon their ability to manage the operations. Any significant malfunction or breakdown or occurrence of any accident involving any of the machinery, equipment, laboratories, automation systems,  IT systems or any other part of manufacturing operations or systems may entail significant repair and maintenance costs, cause delays, suspension or full or partial shutdown of operations(Source: Technopak report, Company DRHP)

Financials

Net Worth
Total Income
Total Borrowings
Profit After Tax
Earnings Per Share

Industry Overview

- India spends relatively very little on healthcare : Global healthcare spending has been rising in sync with economic growth. As the economy grows, public and private spending on health grows, too.The US, the UK, France and Germany are the top four nations with the highest healthcare expenditure as a percentage of GDP. India’s public spending on healthcare services is much lower than that of its global peers. In 2020, India’s expenditure on healthcare was 3% of GDP.


- Global pharmaceutical market to grow at steady 4.5-5% CAGR from 2022 to 2027 : Global pharmaceutical market has grown at a CAGR of 5% from approximately US$ 1,135 billion in calendar year 2017 to approximately US$ 1,457 billion in calendar year 2022.After showing strong growth in calendar year 2021 and 2022 on account of pent-up demand, the market is expected to moderate in the calendar year 2023.However, It is expected to sustain 4.5-5% CAGR growth over the next five years from 2022 to 2027.

vishal-mega-mart IPO

Innova Captab Ltd IPO

₹ 14,784
33 Shares

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

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*The financials mentioned above are sourced from DRHP/ RHP documents.

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