New Delhi, Feb 3 (PTI): Veeda Clinical Research, a Gujarat-based clinical research organization, has re-submitted its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to seek approval for an initial public offering (IPO). The company aims to raise funds through a fresh issue of shares worth ₹185 crore and an offer-for-sale (OFS) of 1.3 crore equity shares by promoters and existing shareholders.
IPO Structure and Shareholders Offloading Stakes
As per the latest filing on Friday, the IPO consists of two components:- Fresh issue of shares: ₹185 crore
- Offer-for-sale (OFS): 1.3 crore equity shares by promoter Basil Private Limited and other shareholders, including Bondway Investments Inc, S N Vinaya Babu, Sabre Partners AIF Trust, CX Alternative Investment Fund, Anushka Singh, Vikrampati Singhania, Harsh Pati Singhania, Anshuman Singhania, and Siddharth Ramesh Kejriwal.
Previous IPO Attempt in 2021
Veeda Clinical Research had earlier filed for an IPO in September 2021 and received SEBI's approval but did not proceed with the listing. The earlier proposal included a fresh issue of ₹331.60 crore and an OFS of ₹500 crore.Pre-IPO Placement and Fund Utilization
According to the fresh DRHP, the company may consider a pre-IPO placement of ₹37 crore. If undertaken, the fresh issue size will be reduced accordingly.The proceeds from the fresh issue will be allocated as follows:
- ₹50 crore for procurement of equipment and machinery.
- ₹35 crore for investment in its subsidiary, Bioneeds India Private Ltd, to acquire equipment and machinery.
- ₹10.89 crore to repay debt of Bioneeds India Private Ltd.
- ₹33 crore for organic growth, marketing, technology upgrades, and digital adoption.
- Remaining funds for general corporate purposes.
Business Operations and Market Presence
Veeda Clinical Research provides end-to-end clinical research services across various drug development stages, including early and late-phase clinical trials. The company has a strong presence in North America, Europe, and Asia, including India.It operates seven facilities in India and has access to over 280 clinical trial sites across the country as of September 2024.
Financial Performance and IPO Management
For the six months ending September 30, 2024, Veeda Clinical Research reported ₹305.30 crore in revenue from operations.The IPO will be managed by Axis Capital, CLSA India, IIFL Capital Services, and SBI Capital Markets as the book-running lead managers, while MUFG Intime India Private Limited will act as the registrar.
With the renewed filing, Veeda aims to capitalize on growth opportunities in the clinical research sector and strengthen its market presence through fresh funding.
