“Unveiling the Innova CapTab IPO: Exploring Grey Market Premium (GMP) Trends and Insights”

“The Nanovaa CapTab initial public offering (IPO) is now closed as of Tuesday, December 26. It launched on Thursday, December 21.. The subscription status for Nanovaa CapTab IPO was 3.54 times on the second day and 1.41 times on the first day. The IPO price band for Nanovaa CapTab is set at ₹426 to ₹448 per equity share with a lot size of 33 equity shares and multiples thereof.

Nanovaa CapTab Limited raised ₹171 crores from anchor investors on Wednesday, December 20.

Nanovaa CapTab IPO has not reserved more than 50% of shares in the public issue for qualified institutional buyers (QIBs), not less than 15% for non-institutional investors (NIIs), and not less than 35% for retail investors.

A unified pharmaceutical company based in India, Nanovaa CapTab is involved in all aspects of the pharmaceutical value chain, including product development, manufacturing, marketing, distribution, and export

Innova Captab IPO details

Nanovaa CapTab IPO details include the issuance of fresh equity shares up to ₹320 crores, with promoters and selling shareholders offering up to 55,80,357 equity shares for sale at an offer for sale (OFS) price of ₹10 per equity share.

Prominent stakeholders in the OFS include Manoj Kumar Lohariwala with up to 1,953,125 equity shares, Vinay Kumar Lohariwala (Promoter Selling Shareholder) with 1,953,125 equity shares, and Jiyan Prakash Agrawal with 1,674,107 equity shares (in consortium with other selling shareholders).

To meet its working capital requirements, repay certain debts, and/or make prepayment for new projects, the company proposes to utilize the net proceeds of the IPO.

The registrar for Nanovaa CapTab IPO is KFin Technologies Limited, and the book running lead managers are ICICI Securities Limited and JM Financial Limited.

As of today, Nanovaa IPO GMP (Grey Market Premium) is at a premium of +140, indicating that the share price is trading at ₹140 premium in the grey market. According to Investorgyan.com, the estimated listing price for Nanovaa CapTab shares is ₹588 per share, which is 31.25% higher than the IPO price of ₹448.

Unveiling the Innova CapTab IPO: A Closer Look at What Experts Say

In a recent review by SBICap Securities, post-listing, the company’s valuation stands at a FY23 P/E multiple of 37.7x based on the upper price band. A prominent player in India’s pharmaceutical value chain, Innova CapTab is a single, cohesive pharmaceutical enterprise. It recently acquired Sheron BioMedicine Limited and entered into a number of other strategic partnerships in the biomedicine industry.

During the fiscal years FY21 to FY23, the company witnessed robust growth with a healthy CAGR of 50% in revenue and 40% in PAT. Brokers advise long-term investors to think about subscribing to the issue..

According to Marwadi Financial Services, looking at the FY23/FY24 annual EPS, post-issue, the company is expected to be listed at a P/E ratio of 37.73x/36.43x with a market cap of Rs. 25,637 million. In contrast, comparable companies like Torrent Pharmaceuticals Limited, Laurus Labs Limited, Ajanta Pharma Limited, JB Chemicals & Pharmaceuticals Limited, Natco Pharma Limited, Eris Lifesciences Limited, Indoco Remedies Limited, Suven Pharmaceuticals Limited, and Windlas Biotech Limited are trading at P/E ratios of 54.1x, 59.7x, 35.9x, 46.8x, 12.4x, 31.8x, 33.3x, 41.0x, and 18.5x, respectively.

The analysts state, “We give this IPO a ‘Subscribe’ rating as the company holds a leading position and is one of the fastest-growing CDMOs in the Indian pharmaceutical formulation market with consistent financial performance. Moreover, it is available at a reasonable valuation compared to its peers.”

The ‘Grey Market Premium’ indicates investors’ willingness to pay more than the issue price.

Disclaimer: The above views and recommendations are those of individual analysts, experts, and brokerage firms, not ours. We advise people to seek advice from concerned people  before making any financial call.”


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