Veeda Clinical Research to raise ₹831 cr via IPO; files draft papers with SEBI

PTI | | Updated on: Sep 29, 2021

To utilise net proceeds to repay the debt, fund capital expenditure, acquire subsidiary Bioneeds India, and general corporate purposes.

Veeda Clinical Research has filed preliminary papers with capital markets regulator Sebi to raise a little over ₹831 crore through an initial public offering (IPO).

The initial share sale will consist of the issuing fresh equity shares worth up to ₹331.60 crore and an offer for sale (OFS) of ₹500 crore by promoters and existing shareholders, according to the draft red herring prospectus (DRHP).

Investors participating in OFS include CX Alternative Investment Fund aggregating up to ₹8.08 crore, ₹90.19 crore by Arabelle Financial Services, ₹259.77 crore by Bondway Investment Inc., ₹0.04 crore by Stevey International Corporation and ₹141.93 crore by Basil Private Limited.

The company intends to utilise net proceeds from the fresh issue for repayment of the debt, funding capital expenditure, further acquiring subsidiary Bioneeds India, funding working capital requirements, and general corporate purposes.

In June, the Ahmedabad-based company, which is backed by CX Partners, announced raising USD 16 million from PE firm Sabre Partners, and high networth individuals including Pranab Mody of JB Chemicals, Havells India family office, Nikhil Vora of Sixth Sense Ventures and Arjun Bhartia of Jubilant Group among others.

Furthermore, to support its capabilities and offer top-notch clinical service for novel drugs, Veeda acquired a 50.1 per cent stake in Bangalore-based Bioneeds India, after acquiring a substantial minority stake in the company in March and July 2021.

Veeda, grown from a single facility in 2004 to have four facilities and the capability to process 1 lakh samples per month, is one of India’s leading independent full-service clinical research organisation (CRO).

It specialises in the focused segment of bio availability/bio equivalence (BA/BE) studies. In addition to BA/BE tests, it offers a broad range of services across most drug development and drug launch value-chain throughout the global markets, including North America, Europe and Asia.

As of March 2021, Veeda has conducted more than 3,500 trials and developed over 1,000 bio-analytical methods spread across generics. It has also completed over 85 global inspections with regulatory authorities, including USFDA, WHO and DGCI.

For fiscal 2021, Veeda Clinical Research reported revenue of ₹195.81 crore and net profit of ₹62.97 crore.

SBI Capital Markets, ICICI Securities, JM Financial and Systematix Corporate Services are the book running lead managers to the issue.

Published on September 29, 2021
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