Mumbai Innova Captan, a pharma company with presence in R&D, manufacturing, drug distribution has picked up UTI AMC Branch at a valuation of Rs 50 crore from UTI Capital 2,400 crore, two people on condition of anonymity told about the development.
The fundraise is a pre-initial public offering (IPO) round and the company is planning to file its draft prospectus for the IPO soon, through which the company can raise as much money as possible. 700-900 crores.
“Innova Captab is working on its IPO with investment banks JM Financial and ICICI Securities,” said one of the people mentioned above.
Emails sent to Innova Captain and UTI Capital did not elicit any response till press time.
Innova was established in 2005 as a partnership firm. It has two World Health Organization Good Manufacturing Practice certified manufacturing facilities at Baddi and also a Research and Development facility approved by the Council of Scientific and Industrial Research. It customizes multiple dosage forms including tablets, capsules, dry syrups, ointments, liquid oral and sachets. The company’s clients include well-established pharma brands such as Ajanta Pharma, Mankind Pharma, Sun Pharma, Abbott Pharma, Cipla, Glenmark Pharma, Lupine and Emcure Pharma, for which it undertakes contract research and manufacture. On the generic side, it has a portfolio of over 400 products, covering approximately 96,000 retail touchpoints through over 3,400 stockists and distributors.
Innova’s net income grew by 9.82% 374.6 Cr to 412 crore between FY20 and FY21, while profits increased from 27.8 crores 34.5 crore on account of higher export sales by wholly owned subsidiaries and higher sales under various brand names, as per filings with RoC. Profit after tax margin increased from 7.44% in FY15 to 8.39% in FY21.