Shares of Innova Captab Ltd. listed on the BSE on Friday at Rs 456.1 apiece, a premium of 1.81% over its IPO price of Rs 448 apiece.
On the National Stock Exchange, the stock debuted at Rs 452.1 per share, a 0.92% premium.
The Rs 570-crore initial public offering was subscribed 55.26 times on its third and final day. The bids were led by institutional investors (116.73 times), followed by non-institutional investors (64.95 times) and retail investors (17.15 times).
It will use the funds for repayment of certain outstanding loans, investment in the subsidiary, working capital and for general corporate purposes.
Of the Rs 320 crore primary fund raising, Rs 200-225 crore will be used for repayment on debt, said Vinay Lohariwala, managing director of Innova Captab. In the next fiscal, the major driver of growth will be the recently acquired Sharon Bio Medicine Ltd., he said.
The company plans to complete the acquisition at the end of the first quarter of the next fiscal and its profit and loss will consolidate from second quarter onwards.
Innova Captab will enjoy many synergies from the acquisition, including geographical expansion to developed markets, Lohariwala said. Both the companies also have few common customers.
Business
The integrated pharmaceutical company has a presence across the value chain, including research and development, manufacturing, drug distribution and marketing and exports.
The business includes:
Contract development and manufacturing organisation business, providing manufacturing services to Indian pharmaceutical companies.
Domestic-branded generics business.
International branded generics business.
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