Innova Captab share price jumps 20% after tepid listing. What should investors do?
Innova Captab made a tepid debut on the exchanges on Friday, listing just 2% above the issue price.
The lackluster debut performance fell way short of expectations, which highlights the potential risks associated with the highly competitive market, regulatory environment, and currency fluctuations.
However, the stock jumped 20% post the listing to hit the upper circuit.
Innova Captab has some core strengths, including a strong market position, robust financials, and strategic growth initiatives.
«Given the uncertain outlook, a cautious approach is warranted, and investors may exit their position; however, those who want to hold it should maintain a stop loss at the issue price,» said Shivani Nayti, Head of Wealth, Swastika Investmart.
The IPO of Innova Captab received tremendous response from investors with 55.26 times subscription at close. The issue received bids of 50,16,58,245 shares against the offered 90,78,010 shares.
Innova Captab is an integrated pharmaceutical company in India with a presence across the pharmaceuticals value chain including research and development, manufacturing, drug distribution, and marketing and exports.
Its business includes CDMO business providing research, product development and manufacturing services to Indian pharmaceutical companies, a domestic branded generics business and an international branded generics business.
The number of CDMO products sold by the company has grown by 131.43% from 1,066 in FY21 to 2,467 in FY23.
