Innova Captab places ₹400 cr bid for Sharon Bio-Medicine

This is the second round of the insolvency proceedings of Sharon Bio-Medicine. In the first round, Peter Beck und Partner Vermoegensverwaltung (PBP), the successful bidder, had failed to implement its resolution plan.

PBP had made an offer of ₹230 crore to secured creditors, against claims of ₹702 crore, the people cited above said on the condition of anonymity.

“Innova Captab has offered a bid of ₹400 crore, which includes an immediate payment of ₹350 crore and the balance ₹50 crore over one year. The second round of the resolution process as per NCLT (National Company Law Tribunal) directive needs to be completed by 16 September,” one of the two people said.

A few other pharma companies have also submitted bids to acquire Sharon Bio-Medicine, the person said, adding that the filing deadline is 22 August.

On 18 August, The Economic Times reported that Piramal Pharma and Cadila Pharmaceuticals have shown interest in the company.

Sharon Bio-Medicine develops and manufactures pharmaceutical intermediates, actives, and finished dosages, besides generic alternatives for new drugs. It posted a loss of ₹1.1 crore on a revenue of ₹37.83 crore in the June quarter.

An email query sent to Innova Captab did not elicit any response till press time.

Innova Captab is an integrated pharmaceutical company with a presence in research and development, manufacturing and drug distribution.

Innova Captab is planning to go public and has filed its draft prospectus on 29 June for an initial share sale that will see the company raise ₹400 crore in equity and an offer for sale of 9.6 million shares by existing shareholders.

The proposed initial public offering (IPO) is likely to be for ₹700-900 crore.

Mint had reported that the company raised ₹50 crore at a pre-IPO round from UTI AMC backed UTI Capital at a valuation of ₹2,400 crore.

Innova Captab was founded as a partnership company in 2005. It has two WHO-GMP (World Health Organization’s Good Manufacturing Practices) certified manufacturing facilities in Baddi and a research and development facility approved by the Council of Scientific and Industrial Research.

It runs a contract development and manufacturing organization business providing manufacturing services to Indian pharmaceutical companies, besides a domestic-branded generics business and an international-branded generics business.

Innova counts pharma majors such as Ajanta Pharma, Mankind Pharma, Sun Pharma, Abbott Pharma, Cipla, Glenmark Pharma, Lupin and Emcure Pharma as its customers, offering contract research and manufacturing. On the generics side, it has a portfolio of more than 400 products sold via 3,400-plus stockists and distributors covering around 96,000 retail touchpoints.

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