Veeda Clinical IPO, CX Partners-backed Clinical Research firm Refiles Issue Papers

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CX Partners-backed Veeda Clinical Research, an independent global full-service contract research organization (CRO), has refiled its issue papers with the Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO). The company had previously filed its IPO papers with SEBI on 27 September 2021 but is now making a renewed attempt to go public. Axis Capital, CLSA India, IIFL Capital Services, and SBI Capital Markets have been appointed as Book Running Lead Managers (BRLMs) for the Veeda Clinical IPO, while MUFG India has been designated as the registrar to the issue.

Veeda Clinical IPO

Veeda Clinical IPO Details

Veeda Clinical IPO comprises a fresh issue of shares worth up to INR 185 crore and an offer for sale (OFS) of up to 13 million equity shares by promoters and other selling shareholders. The face value of each equity share is INR 2. This fundraising initiative aims to strengthen Veeda Clinical Research’s market position and support its strategic growth plans.

Offer for Sale Breakdown:

  • Basil Private Limited: Up to 34,93,895 equity shares
  • Bondway Investments Inc.: Up to 73,59,620 equity shares
  • Dr. S N Vinaya Babu: Up to 8,10,000 equity shares
  • Sabre Partners AIF Trust: Up to 6,90,210 equity shares
  • CX Alternative Investment Fund: Up to 1,98,795 equity shares
  • Anushka Singh: Up to 2,10,570 equity shares
  • Vikrampati Singhania: Up to 81,694 equity shares
  • Harsh Pati Singhania: Up to 40,847 equity shares
  • Anshuman Singhania: Up to 40,487 equity shares
  • Siddharth Ramesh Kejriwal: Up to 34,000 equity shares

Pre-IPO Placement and Strategic Planning

Veeda Clinical Research, in consultation with its book-running lead managers (BRLMs), may consider raising up to INR 37 crore via a private placement, preferential allotment, or other methods before the IPO. If this pre-IPO placement occurs, the size of the fresh issue will be reduced accordingly. The company aims to ensure a robust financial foundation before entering the stock market, leveraging these additional funds to optimize operations and enhance its research capabilities.

Utilization of IPO Proceeds

The proceeds from the fresh issue will be allocated as follows:

  • INR 50 crore for capital expenditure on procurement of equipment and machinery to enhance its research and operational capabilities.
  • INR 35 crore for investment in its material subsidiary, Bioneeds India, for capital expenditure.
  • INR 10.89 crore for repayment or prepayment of borrowings by Bioneeds India to strengthen its financial standing.
  • INR 33 crore for funding organic growth, marketing, technology updates, and digital solutions to improve operational efficiency.
  • General corporate purposes, including expansion and workforce development.

Veeda Clinical Research – Overview

Veeda Clinical Research was incorporated in 2004 and began operations in 2005 in Ahmedabad, Gujarat, with Healthy Volunteer Study (HVS) capabilities. Over the years, the company has significantly expanded its service offerings through both organic and inorganic growth strategies, making it a preferred partner for small, mid-sized, and global pharmaceutical companies.

Veeda offers a broad suite of services, including:

  • Early and late-phase clinical trials
  • Bioavailability and bioequivalence studies
  • Pre-clinical and non-clinical testing
  • Biopharma services, including clinical bioanalysis of large molecules

The company operates in key global markets, including North America, Europe, and Asia, and has access to 558 clinical sites worldwide. As of 30 September 2024, Veeda operates seven facilities in India and has access to over 280 clinical sites within the country.

Market Growth and Financial Performance

According to a Frost & Sullivan (F&S) report mentioned in the issue prospectus, Veeda’s total addressable market (TAM) is projected to grow from USD 65.4 billion (INR 5.7 trillion) in 2023 to USD 110.7 billion (INR 9.65 trillion) by 2028, reflecting a compound annual growth rate (CAGR) of 11.1%.

Veeda has demonstrated strong financial growth, with revenue from operations growing at a CAGR of 16.18% between the Financial Years 2022 and 2024. As of 30 September 2024, revenue from operations stood at INR 305.30 crore. The company’s service distribution includes:

  • 43.31% of clinical trials
  • 36.79% of HVS
  • 19.66% from pre-clinical trials
  • 0.24% of biopharma studies

Regulatory Compliance and Industry Recognition

Veeda has successfully completed 119 global regulatory inspections conducted by prominent authorities such as USFDA, UKMHRA, WHO, ANVISA, DCGI, EMA, and NPRA.

Additionally, the company has undergone over 447 client audits as of 30 September 2024. Veeda’s clientele includes large pharmaceutical companies, biotech firms, and research institutions. The company had over 436 active clients worldwide.

Technological Advancements and Digital Innovation

Veeda has integrated various technological solutions across its business operations, including:

  • Volunteer registration and screening
  • Electronic data capture
  • Remote data verification
  • Laboratory management
  • Sample preparation and quality assurance

These initiatives aim to digitize processes, improve operational efficiency, and ensure high-quality outcomes. The company continuously invests in modernizing its workflows to enhance research capabilities and maintain industry leadership.

As part of its growth strategy, Veeda acquired 100% equity shares of Heads on 26 March 2024. The company also acquired a 30% stake in Bioneeds India on 19 March 2021 and an additional 20.10% stake on 16 July 2021, further strengthening its research and testing capabilities. These acquisitions align with Veeda’s long-term vision of expanding its expertise and reinforcing its market presence.

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Conclusion

Veeda Clinical IPO represents a crucial milestone in its journey to becoming a global leader in clinical research. With a solid track record, a robust financial foundation, cutting-edge technology integration, and a rapidly growing market, the company is well-positioned to achieve sustained long-term growth and deliver value to stakeholders.

For more details related to IPO GMPSEBI IPO Approval, and Live Subscription stay tuned to IPO Central.

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