Innova Captab IPO Basis of Allotment

INNOVA CAPTAB LIMITED

Our Company was incorporated n Mumbai. Maharashtra, as 'Harun Health Care Private Limited', a private limited company under the Companies Art, 1956. pursuant to a certificate of incorporation dated January 3, 2005. issued by the Registrar of Companies. Maharashtra at Mumbai (the "RoC) Thereafter, pursuant to a resolution passed by our Shareholders in the extraordinary general meeting held on December 26, 2009. the name of our Company was changed from 'Harun Health Care Private Limned' to "Innova Captab Private limited", and consequently, a fresh certificate of incorporation dated February 2, 2010, was issued by the RoC to our Company Subsequently, our Company was convened from a private United company to a pubic limited company, pursuant to a resolution passed by our Shareholers in the extraordinary general meeting he'd on July 12, 2018. and consequently, the name of our Company was changed to our present name. "Innova Captab Limited", and a fresh certificate of incorporation dated July 26, 2018. was issued by the RoC to our Company. For details of changes in the name and the registered office address of our Company, see History and Certain Corporate Matters on page 220 of the Prospectus dated December 26, 2023 (Prospectus')

INITIAL PUBLIC OFFERING OF 12,723,214 EQUITY SHARES OF FACE VALUE OF Rs. 10 EACH ('EQUITY SHARES") OF OUR COMPANY FOR CASH AT A PRICE OF Rs. 448 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs. 438 PER EQUITY SHARE) ("OFFER PRICE") AGGREGATING Rs. 5,700 MILLION ("OFFER"). THE OFFER COMPRISES OF A FRESH ISSUE OF 7,142,857 EQUITY SHARES AGGREGATING Rs. 3,200.00 MILLION ("FRESH ISSUE") AND AN OFFER FOR SALE OF 5,580,357 EQUITY SHARES ("OFFERED SHARES") AGGREGATING Rs. 2,500 MILLION, COMPRISING OF 1,953,125 EQUITY SHARES AGGREGATING Rs. 875 MILLION BY MANOJ KUMAR LOHARIWALA, 1,953,125 EQUITY SHARES AGGREGATING Rs. 875 MILLION BY V1NAY KUMAR LOHARIWALA (TOGETHER WITH MANOJ KUMAR LOHARIWALA, THE "PROMOTER SELLING SHAREHOLDERS") AND 1,674,107 EQUITY SHARES AGGREGATING Rs. 750 MILLION BY GIAN PARKASH AGGARWAL (THE "OTHER SELLING SHAREHOLDER", AND TOGETHER WITH THE PROMOTER SELLING SHAREHOLDERS, THE "SELLING SHAREHOLDERS", AND SUCH OFFER FOR SALE OF EQUITY SHARES BY THE SELLING SHAREHOLDERS, THE "OFFER FOR SALE"). THE OFFER CONSTITUTED 22.23% OF THE POST-OFFER PAID UP EQUITY SHARE CAPITAL OF OUR COMPANY.

1. We depend on a limited number of CDMO customers. Any reduction in the number of CDMO customers and adverse developments or inability to enter into or maintain relationships with these CDMO customers could have an adverse effect on our business, results of operations and financial condition. Our revenue from operations from CDMO business from our top ten customers and such revenue as a percentage of our operations is set forth below:

2. A portion of the proceeds from this Offer will not be available to us. The proceeds from the Offer for Sale will be remitted to the Selling Shareholders and our Company will not benefit from such proceeds.

3. We are dependent on the import of raw materials from China, China SEZ and Hong Kong. This exposes us to political, economic and social conditions in greater China.

4. Our business is capital intensive. Any insufficient cash flows from our operations or inability to borrow to meet our working capital requirements it may materially and adversely affect our business and results of operations. As of October 31, 2023, our sanctioned working capital facilities amounted to Rs. 2,650.00 million on a restated consolidated basis and our amount outstanding under our working capital facilities was Rs. 1,585.53 million on such date. We intend to utilize Rs. 720.00 million (as part of the Net Proceeds) towards funding our incremental working capital requirements in Fiscal 2023 and Fiscal 2024.

5. Our Restated Consolidated Financial Information are not comparable on a period-to-period basis and to any future financial results that we may prepare and further, our Pro Forma Condensed Consolidated Financial Information are unaudited and have not been prepared in accordance with generally accepted accounting principles including accounting standard and therefore, is subject to change and may not give an accurate picture of our factual results of operations or financial condition.

6. We operate in a market that is highly competitive. Our competition for formulation and branded generic products is with pharmaceutical companies and other generic product suppliers in India and other jurisdictions.

7. We have 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.

8. We have two manufacturing facilities in Baddi, Himachal Pradesh. Our 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.

9. Failure to comply with the quality requirements and technical specifications prescribed by our 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.

10.Our 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.

11. We have incurred significant capital expenditure during the last three Fiscal Years and the three months ended June 30, 2023.

(Rs. in million)

12. Average cost of acquisition of Equity Shares held by the Selling Shareholders ranges from Rs.2.36 to Rs.15.20 per Equity Share and Offer Price at higher end of the Price Band is Rs.448 per Equity Share.

13. Weighted Average Return on Net Worth for past three Fiscals i.e. 2023, 2022 and 2021 is 26.48%

14. Details of weighted average cost of acquisition of all Equity Shares transacted in last three years, eighteen months and one year immediately preceding the date of the RHP.

''As certified by the N B T & Co, Chartered Accountants, by way of their certificate dated December 19, 2023.

15. Weighted average cost of acquisition, floor price and cap price

16. The two BRLMs associated with the Offer have handled 79 public issues in the past three years, out of which 20 issues closed below the offer price on listing date.

*Issues handled where there were no common BRLMs.

This Offer was made through the Book Building Process, in terms of Rule 19(2)(b) of the SCRR read with Regulation 31 of the SEBI ICDR Regulations and in compliance with Regulation 6 (1) of the SEBI ICDR Regulations wherein not more than 50% of the Offer was available for allocation on a proportionate basis to Qualified Institutional Buyers ("QIBs", and such portion, the "QIB Portion"), provided that our Company and the Selling Shareholders, in consultation with the BRLMs, allocated up to 60% of the QIB Portion to Anchor Investors on a discretionary basis ("Anchor Investor Portion"). One-third of the Anchor Investor Portion was reserved for the domestic Mutual Funds, subject to valid Bids having been received from the domestic Mutual Funds at or above the Anchor Investor Allocation Price in accordance with the SEBI ICDR Regulations. Further, 5% of the of the QIB Portion (other than Anchor Investor Portion) ("Net QIB Portion") was available for allocation on a proportionate basts to Mutual Funds only, and the remainder of the Net QIB Portion was available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids having been received at or above the Offer Price. Further, not less than 15% of the Offer was available for allocation to Non-lnstitutional Bidders (out of which one-third of the portion available to Non-lnstitutional Bidders was reserved for Bidders with an application size of more than Rs. 0.20 million and up to Rs. 1.00 million and two-third were reserved for Bidders with application size of more than Rs. 1.00 million) and not less than 35% of the Offer was available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids having been received from them at or above the Offer Price. All Bidders, other than Anchor Investors, were required to participate in the Offer by mandatory utilising the Application Supported by Blocked Amount ("ASBA") process by providing details of their respective ASBA Account and UPI ID in case of UPI Bidders, as applicable, pursuant to which their corresponding Bid Amounts were blocked by the Self Certified Syndicate Banks ("'SCSBs") or by the Sponsor Bank(s) under the UPI Mechanism, as the case may be. to the extent of respective Bid Amounts. Anchor Investors were not permitted to participate in the Offer through the ASBA process. For further details, see "Offer Procedure 'on page 467 of the Prospectus.

The bidding for Anchor Investor opened and closed on December 20, 2023. The Company received 17 applications from 15 Anchor Investors for 4,041,807 Equity Shares. The Anchor Investor Offer Price was finalized at Rs. 448 per Equity Share. A total of 3,816,963 Equity Shares were allocated under the Anchor Investor Portion aggregating to Rs. 1,709,999,424/-. The Offer received 20,60.804 applications for 49,89,73,068 Equity Shares resulting in 39.56 times subscription as disclosed in the Prospectus. The details of the applications received in the Offer from Retail Individual Bidders. Non-lnstitutional Bidders and QlBs are as under (before technical rejections):

Final Demand

A summary of the final demand as per NSE and BSE as on the Bid./Offer Closing Date at different Bid/prices is as under

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange. being NSE on December 27,2023.

A. Allotment to Retail Individual Bidders (After Technical Rejections) (including ASBA Applications)

The Basis of Allotment to the Retail Individual Bidders, who have bid at cut-off or at the Offer Price of Rs. 448 per Equity, was finalized in consultation with NSE. This category has been subscribed to the extent of 17.02 times. The total number of Equity Shares Allotted in Retail Individual Bidders category is 44,53,125 Equity Shares to 1,34,943 successful applicants .The category-wise details of the Basis of Allotment are as under:

Please Note : 1 additional Share shall be allotted to 6 Allottees from amongst 10522 Successful Applicants from the categories 66-429 (i.e.excluding successful applicants from Category 33) in the ratio of 3:5261

B. Allotment to Non-lnstitutional Bidders (more than Rs.0.20 million and upto Rs.1 million) (After Technical Rejections) (including ASBA Applications)

The Basis of Allotment to the Non- lnstitutional Bidders (more than Rs. 0.20 million and upto Rs.1 million), who have bid at the Offer Price of Rs. 448 per Equity Share or above, was finalized in consultation with NSE. This category has been subscribed to the extent of 51.60 times. The total number of Equity Shares allotted in this category is 6,36,161 Equity Shares to 1.376 successful applicants. The category-wise detarfs of the Basis of Allotment are as under:

Please Note: 4 additional Share shall be allotted to 91 Successful Allottees from Serial No. 2 to 54 (i.e. excluding successful applicants from Category 462) in the ratio of 1:1.

Please Note: 1 additional Share shall be allotted to 85 Allottees from amongst 91 Successful Allottees from Serial No. 2 to 54 (i.e. excluding successful applicants from Category 462) in the ratio of 14:15.

C. Allotment to Non-lnstitutional Bidders (more than Rs.1 million) (After Technical Rejections) (including ASBA Applications)

The Basis of Allotment to the Non-lnstitutional Bidders (more than Rs.1 million), who have bid at the Offer Price of Rs. 448 per Equity Share or above, was finalized in consultation with NSE. This category has been subscribed to the extent of Rs. 1.71 times. The total number of Equity Shares allotted in this category is 12,72,322 Equity Shares to 2,753 successful applicants. The category-wise details of the Basis of Allotment are as under: (Sample)

Please Note: 1 (One) lot of 462 shares have been allotted 2 Applicants from amongst all the Applicants from Serial No. 141 to 147 in the ratio of 2:35 (All these categories have been moved at the end for easy reference)

Please Note: 1 additional Share shall be allotted to 436Allottees from amongst 2.753 Successful Applicants from all the categories m the ratio of 16:101

D. Allotment to QIBs (After Technical Rejections)

Allotment to QIBs. who have bid at the Offer Price of Rs. 448 per Equity Share or above, has been done on a proportionate basis in consultation with NSE. This category has been subscribed to the extent of 115.73 times of Net QIB portion. As per the SEBI Regulations. Mutual Funds were allotted 5% of the Equity Shares of Net QIB portion available i.e.1,27,233 Equity Shares and other QIBs and unsatisfied demand of Mutual Funds were allotted the remaining available Equity Shares i.e. 24,17,410 Equity Shares on a proportionate basis. The total number of Equity Shares allotted in the QIB category is 25,44,643 Equity Shares, which were allotted to 85 successful Applicants.

E. Allotment to Anchor Investors (After Technical Rejections)

The Company, in consultation with the BRLM. have allocated 38.16.963 Equity Shares to 15 Anchor Investors (through 17 Anchor Investor Application Forms) (including 6 domestic Mutual Funds through 8 schemes) at an Anchor Investor Offer Price at Rs.448 per Equity Share in accordance with SEBI ICOR Regulations. This represents 60% of the QIB portion.

The IPO committee of our Company at its meeting held on December 27, 2023 has taken on record the basis of allotment of Equity Shares approved by the Designated Stock Exchange, being NSE and has allotted the Equity Shares to various successful applicants. The Allotment Advice Cum Refund Intimation anchor notices have been dispatched to the address of the investors as registered with the depositories. Further, instructions to the SCSBs have been issued for unblocking of funds and transfer to the Public Offer Account on December 27,2023 and the payments to non-syndicate brokers have been issued on December 28, 2023. In case the same is not received within ten days, investors may contact the Registrar to the Offer at the address given below. The Equity Shares allotted to the successful allottees have been uploaded on December 28,2023 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has filed the Listing application with BSE and NSE on December 28, 2023. The Company has received the listing and trading approval from BSE & NSE. and trading will commence on December 29, 2023.

Note: AH capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus

INVESTORS PLEASE NOTE

These details of the Allotment made was hosted on the website of Registrar to the Offer, KFin Technologies Limited at www.kfintech.com.

All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the First/ Sole applicant. Serial number of the Bid cum Application form number. Bidders DP ID, Client ID, PAN. date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares b*d for. name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below

KFin Technologies Limited

Selenium. Tower B. Plot No - 31 and 32, Financial District Nanakramguda. Serilingampalty, Hyderabad. Rangareddi 500 032 Telangana. India.

Telephone: + 9140 6716 2222: Email: innovacaptab.ipo@kfintech.com; Investor grievance e-mail: einward.ris@kfintech.com

Website: www.kfintech.com: Contact person: M Murali Krishna: SEBI Registration No: INR000000221

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF INNOVA CAPTAB LIMITED.

INNOVA CAPTAB LIMITED has filed a Prospectus dated December 26.2023 with the RoC. The Prospectus is made available on the website of the SEBI at www.sebi.co.in as well as on the website of the BRLMs i.e.. ICICI Securities Limited at www.icicisecurities.com and JM Financial Limited at www.jmfi.com the website of the NSE at www.nseindia.com and the website of the BSE at www.bseindia.com and the website of the Company at www.innovacaptab.com. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such nsks. please see the section titled 'Risk Factors' beginmng on page 33 of the Prospectus.

This announcement has been prepared for publication in India and may not be released in the United States. This announcement does not constitute an offer of securities for sale in any jurisdiction, including the United States, and any securities described in this announcement may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933 or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements There will be no public offering of the Equity Securities in the United Slates.