Pharmaceutical companies Blue Jet Healthcare Ltd and Innova Captab Ltd have received market regulator Securities and Exchange Board of India's (SEBI) approval to proceed with their plans for initial public offerings (IPOs).
Blue Jet Healthcare Ltd, a specialty pharmaceutical and healthcare ingredient company, which filed preliminary IPO papers with SEBI on September 2 last year, has received the final nod to raise funds.
The public issue comprises of offer-for-sale (OFS) where promoters, Akshay Bansarilal Arora and Shiven Akshay Arora, will offload 2.16 crore equity shares. Since it's an OFS mechanism, proceeds from the sale will not go to the company.
Kotak Mahindra Capital Company Ltd, ICICI Securities Ltd, and J.P. Morgan India Private Ltd are the books running lead managers and Link Intime India Private Ltd is the registrar to the offer.
According to the company's Draft Red Herring Prospectus (DRHP), the pharma company operates under the 'Blue Jet' brand name and has competencies and manufacturing capabilities in contrast media intermediates and high-intensity sweeteners, including saccharin and its salts as well as active pharmaceutical ingredients.
Its business model focuses on collaboration, development and manufacturing of complex chemistry categories. Over the past 5 decades, it has developed over 100 products with over 40 products commercialised.
The equity shares of the company are proposed to be listed on BSE and NSE.
Innova Captab, an integrated pharmaceutical company, which filed preliminary IPO papers with SEBI on July 07 last year, has received final nod to raise ₹400 crore via fresh issue of equity shares and OFS of 96 lakh equity shares by the promoters.
Promoters Manoj Kumar Lohariwala and Vinay Kumar Lohariwala, and investor Gian Parkash Aggarwal will be offloading their shares.
As per the DRHP, 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 ₹80 crore. If such placement is completed, the fresh issue size will be reduced.
ICICI Securities Ltd and JM Financial Ltd are the book running lead managers.
The proceeds from its fresh issuance worth Rs. 180.50 crore will be utilised for repayment and/or prepayment of debt. ₹29.50 crore will be used for investment in subsidiary, Univentis Medicare Ltd, for repayment and/or prepayment in part or full of an outstanding loan availed, and ₹90 crore for funding working capital requirements and for general corporate purposes.
The Haryana-based drugmaker, in terms of operating revenue, was the second largest formulation contract development and manufacturing organisation (CDMO) in India in fiscal 2021, and the third fastest growing formulation CDMO over the period fiscal 2019 to fiscal 2021.
According to DRHP, its business includes contract development and manufacturing organisation providing manufacturing services to Indian pharmaceutical companies, domestic branded generics business and an international branded generics business.
KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.