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), a statement from the company said.
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 crores 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), the statement also said.
It further mentioned that market source estimate it to raise anywhere between Rs 700-900 crores.
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, added the statement.
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 crores. If such placement is completed, the fresh issue size will be reduced, the statement mentioned.
The proceeds from its fresh issuance worth Rs 180.50 crores will be utilised for repayment and/or prepayment, in part or in full, of certain outstanding loans, Rs 29.50 crores for investment in subsidiary, UML, for repayment and/or prepayment in part or full of an outstanding loan availed, Rs 90 crores for funding working capital requirements and for general corporate purposes.