IPO Watch: Veeda Clinical Research plans to raise ₹185 crore via IPO; refiles draft papers with SEBI

IPO Watch: Veeda Clinical Research has refiled its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

The firm previously submitted its IPO documents to SEBI on September 27, 2021. Veeda Clinical Research was founded in 2004 and commenced operations in 2005 with its initial facility located in Ahmedabad, Gujarat, which was equipped to conduct Healthy Volunteer Studies (HVS).

The company provides a wide range of services that include both early and late-phase clinical trials, Healthy Volunteer Studies (HVS) that cover bioavailability and bioequivalence studies, pre-clinical trials, and non-clinical testing, along with biopharma services such as non-clinical analysis and clinical bioanalysis for large molecules.

With a footprint in major global markets including North America, Europe, and Asia (India included), Veeda has positioned itself as a notable entity in the clinical research sector. The company boasts a solid history of adhering to regulatory standards, having successfully undergone 119 global regulatory inspections for its HVS and pre-clinical services.

In terms of financial performance, Veeda has consistently grown, with its operational revenue increasing at a CAGR of 16.18% from Financial Years 2022 to 2024.

IPO details

The initial public offering (IPO) has a face value of ₹2 and comprises a combination of a fresh issue of shares totaling up to ₹185 crore and an offer-for-sale involving up to 13 million equity shares from Promoter and Other Selling Shareholders.

The Offer for Sale includes the following: Basil Private Limited selling up to 3,493,895 equity shares, Bondway Investments Inc. with up to 7,359,620 equity shares, Dr. S N Vinaya Babu offering up to 810,000 equity shares, Sabre Partners AIF Trust with up to 690,210 equity shares, CX Alternative Investment Fund selling up to 198,795 equity shares, Anushka Singh offering up to 210,570 equity shares, Vikrampati Singhania with up to 81,694 equity shares, Harsh Pati Singhania selling up to 40,847 equity shares, Anshuman Singhania with up to 40,487 equity shares, and Siddharth Ramesh Kejriwal offering up to 34,000 equity shares.

The funds raised from the new issue amounting to ₹50 crore will be allocated for capital expenditures related to the acquisition of equipment and machinery for the company; ₹35 crore will be directed towards capital expenditures in its material subsidiary, Bioneeds India Private Limited, for the purchase of equipment and machinery; ₹10.89 crore will be invested in Bioneeds India Private Limited for the repayment or pre-payment, either in part or full, of specific borrowings of the subsidiary; ₹33 crore will be utilized to support organic growth for both the Company and its material subsidiary, Bioneeds India Private Limited, as well as Health Data Specialists (Holdings) Ltd through marketing and promotional initiatives, technology upgrades, and the implementation of modern digital solutions in their workflows to improve efficiency and quality assurance in operational processes and data management; and for general corporate purposes.

The book-running lead managers for the issue are Axis Capital Ltd, CLSA India Private Ltd, IIFL Capital Services Ltd, and SBI Capital Markets Ltd, while MUFG Intime India Private Ltd serves as the registrar for the issue.

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