Veeda Clinical Research Re-Files IPO Papers With SEBI For Rs 185 Crore

Clinical research organisation Veeda Clinical Research has re-filed preliminary papers with markets regulator SEBI seeking its approval to raise funds through an initial share sale. The Gujarat-based firm's initial public offering is a combination of a fresh issue of shares worth Rs 185 crore and an offer-for-sale of 1.3 crore equity shares by a promoter and other selling shareholders, according to the Draft Red Herring Prospectus filed on Friday.

Under the OFS, promoter Basil Private Limited is offloading shares, besides, shareholders such as Bondway Investments Inc, S N Vinaya Babu, Sabre Partners AIF Trust, CX Alternative Investment Fund, Anushka Singh, Vikrampati Singhania, Harsh Pati Singhania, Anshuman Singhania, and Siddharth Ramesh Kejriwal are selling shares.

Before this, the company had filed its IPO papers with the Securities and Exchange Board of India way back in September 2021 but didn't go ahead with the public issue despite getting approval from the regulator.

At that time, Veeda's proposed IPO comprised an issuance of fresh equity shares worth up to Rs 331.60 crore and an OFS of Rs 500 crore by promoters and existing shareholders.

Going by the fresh draft papers filed on Friday, Veeda may consider raising Rs 37 crore in a pre-IPO placement round. If such placement is undertaken, the fresh issue will be reduced.

Proceeds from the fresh issue to the tune of Rs 50 crore will be used for procurement of equipment and machinery for the company: Rs 35 crore for investment in its subsidiary, Bioneeds India Private Ltd, for procurement of equipment and machinery and another Rs 10.89 crore for the debt payment of the subsidiary.

Additionally, Rs 33 crore will be utilised for funding organic growth of the company, its subsidiaries -- Bioneeds India Pvt. Ltd. and Health Data Specialists (Holdings) Ltd. -- through marketing and promotional activities, updation of technology and adoption of modern digital solutions in its workflows and a portion will be used for general corporate purposes.

Veeda offers a comprehensive suite of services across various stages of the drug development value chain, including early phase and late phase clinical trials. It has a presence in key global markets, including North America, Europe, and Asia, including India.

Further, the company operates seven facilities in India and has access to over 280 clinical sites within the country as of September 2024.

On the financial front, the company's revenue from operations stood at Rs 305.30 crore for the six months ended Sept. 30, 2024.

Axis Capital, CLSA India, IIFL Capital Services and SBI Capital Markets are the book-running lead managers and MUFG Intime India Pvt. Ltd. is the registrar of the issue.