Market sources estimate it to raise anywhere between Rs 700-900 crore
Haryana-based Innova Captab has filed its Draft Red Herring Prospectus (DRHP) with the markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
The issue with a face value of Rs 10 per equity share consists of a fresh issue of equity shares worth up to Rs 400 crore and an offer-for-sale (OFS) up to 9,600,000 equity shares by Promoter and selling shareholders, which comprises up to 3,200,000 by Manoj Kumar Lohariwala, up to 3,200,000 by Vinay Kumar Lohariwala (Promoter Selling Shareholders) and up to 3,200,000 by Gian Parkash Aggarwal (Other Selling Shareholders).
Market sources estimate it to raise anywhere between Rs 700-900 crore.
The Offer is being made through the Book Building Process, wherein not more than 50 per cent of the offer shall be available for allocation to Qualified Institutional Buyers, not less than 15 per cent of the offer shall be available for allocation to Non-Institutional Bidders and not less than 35 per cent of the offer shall be available for allocation to retail individual bidders.
The company, in consultation with the lead bankers to the issue, may consider a private placement or preferential issue of equity shares or any other method aggregating up to Rs 80 crore. If such placement is completed, the fresh issue size will be reduced.
The proceeds from its fresh issuance worth Rs 180.50 crore will be utilised for repayment and/or prepayment, in part or in full, of certain outstanding loans, Rs 29.50 crore for investment in the subsidiary, UML, for repayment and/or prepayment in part or full of an outstanding loan availed, Rs 90 crore for funding working capital requirements and general corporate purposes.
The company’s revenue from operations grew 10 per cent to Rs 410.66 crore for Fiscal 2021 from Rs 373.32 crore for the same period last year, and profit after tax grew 23.70 per cent to Rs 34.50 crore for Fiscal 2021 from Rs 27.89 crore for Fiscal 2020. For nine-month ending December 2021, revenue from operations stood at Rs 584.12 crore and profit after tax at Rs 50.88 crore.
