Vida files papers for IPO to partially exit CX Partners

IPO involves a new issue ₹331.60 crore and an offer for sale (OFS) ₹500 crores by the shareholders and promoters.

OFS includes: ₹8.08 crore sale by CX Alternative Investment Fund, ₹90.19 crore sales by Arabelle Financial Services Ltd., ₹259.77 crore sale by Bondway Investments Inc., ₹4 lakh sales by Stevie International Corporation, and a ₹141.93 crore sales by Tulsi Pvt. Ltd.

CX Alternative Investment Fund, Bondway, Basil and Arabel are all CX Partner entities. CX Alternative Investment Fund holds 2.98% stake, Arbel holds 4.51% stake, Bondway holds 28.36% stake, Stevie holds 0.002% stake and Tulsi holds 52.42% stake.

SBI Capital Markets, ICICI Securities, JM Financial and Systematics are the book running managers of the corporate services issue.

Out of the proceeds from this issue, ₹28.71 crore will be used to repay the loan done by BioNeeds, the branch of VIDA, ₹33 crores for capital expenditure, ₹45 crores for investment in the branch of VIDA to finance the capital requirements, ₹75 crores for further acquisition of shares of Bioneeds, ₹17 crore for the acquisition of shares of Ingenuity Biosciences, and ₹50 crores for working capital requirements.

In July, Veeda purchased a 50.10% interest in Biooneeds, a preclinical contract research organization providing discovery, development and regulatory services to the pharmaceutical industry.

The investment provided access to two facilities in Bengaluru with self-contained chemistry, biopharma and analytical laboratories with 99 specialized experiment rooms. The firm intends to acquire 100% stake in Bioneeds.

As of March 2021, Biooneeds had total secured borrowings ₹43.78 crore and total unsecured borrowings ₹26.66 crores. Headquartered in Ahmedabad, Vida offers generic and innovator pharmaceutical companies a range of early and late stage bioequivalence studies and clinical trials.

ravindra.s@livemint.com