Veeda set to Raise Rs. 831 Cr via IPO: Know All Here

5 August 2022
4 mins read
Veeda set to Raise Rs. 831 Cr via IPO: Know All Here

Veeda Clinical Research has filed preliminary papers with SEBI to raise funds worth Rs. 831.60 crores via an initial share sale. As per the DRHP, this public issue will comprise fresh issuance of equity shares worth Rs. 331.60 crores. Moreover, it will include an offer for sale (OFS) of Rs. 500 crores.

More Details Regarding the Secondary Issue

As part of the secondary issue, CX Alternative Investment Fund will be offloading equity shares worth not more than Rs. 8.08 crores. Arabelle Financial Services Ltd. and Bondway Investments Inc. will sell holdings encompassing Rs. 259.77 crores. Furthermore, this OFS will include equity shares worth a maximum of Rs. 141.93 crores and Rs. 0.40 million by Basil Pvt Ltd and Stevey International.

Don’t Miss These Crucial IPO Details

Here are some vital information related to the forthcoming initial public offering of Veeda Clinical Research:

  • Type of Issue: Book build issue
  • Face Value: 2 per equity share
  • Listing on: NSE as well as BSE
  • IPO Price Band: Yet to be announced
  • Minimum Order Quantity: Yet to be announced
  • Market Lot: Yet to be announced
  • IPO opens on: Yet to be announced
  • IPO closes on: Yet to be announced

Objectives of Veeda Clinical Research IPO

Veeda Clinical Research aims to fulfil these objectives by raising funds via initial public offering:

  • To facilitate the repayment of debt of its subsidiary, Bioneeds
  • To meet requirements related to capital expenditure
  • To acquire more shares of Bioneeds
  • To fulfil working capital requirements
  • To acquire a stake in Ingenuity BioSciences Pvt Ltd
  • To fulfil general corporate purposes

For investors who are considering whether to apply for Veeda Clinical Research IPO, it is imperative to know essential details regarding this Ahmedabad-based company. To find out what they are, read on!

Veeda Clinical Research in Brief

Veeda Clinical Research offers a wide variety of bioequivalence studies along with trials to pharmaceutical companies. Till now, this company has conducted over 3,500 trials. Moreover, it has completed over 85 regulatory inspections all around the world. This company has five facilities in total. Out of them, one unit is located in Mehsana while the rest are in Ahmedabad.

Here’s What Makes Veeda IPO Enticing for Investors

The following are some key strengths of Veeda Clinical Research:

  • This company has highly experienced promoters along with a well-qualified team of senior managers.
  • Veeda has a diversified revenue stream. Moreover, it has a proven track record in clinical research.
  • The company has a diverse client base.
  • From the liquidity standpoint, Veeda is in a favourable position. Furthermore, it has a sufficient capital structure.

A Quick Glance at Veeda’s Financials

From the table below, investors can get an idea regarding the financial position of Veeda Clinical Research:

Financial Year Total Revenue   Total Assets Profit after Tax
2018-19 2,238.93 million 1,547.35
million
441.59 million
2019-20 1,536.81 million 1,547.35
million
(0.43) million
2020-21 2,343.83 million 2,855.00 million 632.89 million

Wrapping Up

Veeda Clinical Research has a favourable position in the industry. Furthermore, if it manages to fulfil the objectives by allocating funds raised via the IPO efficiently, it can strengthen its presence even furthermore.

However, Investors who are interested in Veeda Clinical Research IPO must consider various other aspects, such as weaknesses and threats of this company. Moreover, they might want to do a competitor analysis before placing the IPO order.

 

Frequently Asked Questions

  1. Who have been appointed as the merchant bankers for Veeda Clinical Research IPO?

The book running managers to Veeda’s upcoming public issue are JM Financial, ICICI Securities, Systematix Corporate Services and SBI Capital Markets.

  1. How much stake in Veeda do the companies participating in the offer for sale hold?

CX Alternative Investment Fund owns 2.98% of Veeda’s shares. Arabelle Financial, Bondway Investments and Basil hold 4.51%, 28.36%, and 52.42%, respectively. That said, Stevey International Corporation owns 0.002% of the company’s equity shares.

  1. How can I subscribe to Veeda Clinical Research IPO?

To apply for Veeda Clinical Research IPO, new investors may choose to open a DEMAT account with Angel One. Nevertheless, if you already have a trading account with Angel One, you can log in to your account via the Angel One app and place the IPO order conveniently.