Innova Captab IPO: December 26 is the last day to subscribe; Here are key risks to know

On the second day of subscription, the Innova Captab IPO has been fully booked, and investors have responded favourably to it overall. Innova Captab IPO subscription status is 3.54 times on day 2.

On day 2, Innova Captab IPO’s retail investors portion was subscribed 5.02 times, NII portion was subscribed 3.28 times, and QIB portion was booked 1.09 times.

On the first day, the issue was subscribed 1.41 times, with the retail portion fully booked. 

Innova Captab IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.

A fresh issuance of equity shares up to ₹320 crore and an offer-for-sale (OFS) of up to 55,80,357 equity shares by the promoter and selling shareholders make up the offer of face value of ₹10 per equity share.

Here are key risks involved before subscribing to the issue –

1. The company has recently acquired Sharon, and do not yet know whether we will achieve the expected benefits from such acquisition, which could materially adversely affect our business, results of operation, cash flows and financial condition.
2. The business business is dependent and will continue to depend on our manufacturing facilities, and we are subject to certain risks in our manufacturing process such as the breakdown or failure of equipment, industrial accidents, severe weather conditions and natural disasters
3. Failure to comply with the quality  requirements and technical specifications  prescribed by its customers may lead to loss of business from such customers and could negatively impact our business, results of operations and financial condition, including cancellation of existing and future orders which may expose us to warranty claims.
4. The funding requirements  and  proposed deployment  of  the  Net  Proceeds  are  based on management estimates and may be subject to change based on various factors, some of which are beyond our control.
5. The company has incurred significant capital expenditure during the last three Fiscal Years and the three months ended June  30,  2023. The company may require substantial financing  for  our  business  operations  and  planned capital expenditure and the failure to obtain additional financing on terms commercially acceptable to us may adversely affect our ability to grow and our future profitability.
6. The company is dependent  on  China,  China  SEZ  and  Hong  Kong  for its  raw  material  supplies which exposes it to political, economic and social conditions in greater China.
7. The business is capital intensive. Any insufficient cash flows from its operations or inability to borrow to meet our working capital requirements, it may materially and adversely affect our business and results of operations.
8. The company is required to transfer, obtain, renew or maintain statutory and regulatory permits, licenses and approvals connected with Sharon’s business that became a wholly owned subsidiary of UML as of June 30, 2023, and any delay or inability in transferring, renewing or maintaining such permits, licenses and approvals could adversely affect our business, results of operations and financial condition.
9. The company is subjected  to  risks  associated  with  rejection  of  supplied  products,  and  consequential  claims  and associated product liability costs due to defects in our products, which could generate adverse publicity or adversely affect its business, results of operations or financial condition.
10. Any shortfall in the supply of its raw materials or an increase in our raw material costs, or other input costs, may adversely  affect  the pricing and supply of its products  and adversely  affect our  business, results of operations and financial condition.

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Published: 25 Dec 2023, 04:45 PM IST