Veeda Clinical Research Limited has filed a draft red herring prospectus (DRHP) with SEBI in order to raise funds through an initial public offering (IPO). The proposed offering would include new equity shares worth up to Rs 331.60 crore and a Rs 500 crore offer for sale (OFS) by the founders and present shareholders. CX Alternative Investment Fund may invest up to Rs 8.08 crore in the OFS; Arabelle Financial Services Limited may invest up to Rs 90.19 crore; Bondway Investment Inc. may invest up to Rs 259.77 crore; Stevey International Corporation may invest up to Rs 0.04 crore, and Basil Private Limited up to Rs 141.93 crore. SBI Capital Markets Limited, ICICI Securities Limited, JM Financial Limited, and Systematix Corporate Services Limited are the issue’s book-running lead managers.

Veeda Clinical Research Limited serves clients in North America, Europe, and Asia by covering the majority of the medication development and launch value chain. Bioanalytical services, such as bioavailability and bioequivalence (“BA and BE”) investigations, are provided, as is a comprehensive suite of clinical trials, including pre-clinical, early-phase, and late-phase clinical trials, as well as ancillary services. They have conducted pharmacokinetic (“PK“) investigations as well as generic, new chemical
entities (“NCEs“), big molecules, and biosimilar trials. They had grown from a single facility in Ahmedabad with a total capacity of 62 beds and a monthly capacity of 7,000 samples to four facilities in Ahmedabad and one in Mehsana with a total capacity of 532 beds and a monthly capacity of 100,000 samples as of March 31, 2021. They presently have pre-clinical trial capabilities with two facilities in Bangalore, each with 99 separate experiment rooms and self-contained chemistry, biopharmaceutical, and analytical laboratories.
Veeda Clinical Research Limited IPO Objectives:
Here are a few quick reasons why Veeda Clinical Research Limited is going public:
- Our subsidiary, Bioneeds, provided repayment/prepayment of certain liabilities (including accrued interest).
- Funding capital expenditure requirements of the Company.
- Investment in the Subsidiary, Bioneeds, for financing capital expenditure requirements.
- Funding further acquisition of equity shares in Bioneeds.
- Acquisition of equity shares in the Joint Venture, Ingenuity BioSciences Private Limited.
- Funding working capital requirements of the Company.
Veeda Clinical Research Limited IPO Financials
Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
---|---|---|---|
Revenue | 19.58 | 15.13 | 21.84 |
EBITDA | 6.67 | 1.94 | 8.82 |
PAT | 6.33 | 0.0 | 4.42 |
EPS (basic in Rs.) | 15.39 | -0.01 | 12.17 |
ROE | 37.16% | -0.05% | 50.20% |
ROCE | 26.72% | 3.42% | 75.94% |
Cash generated from operating activities | 7.66 | 0.91 | 8.20 |
Net cash from investing activities | -9.26 | -0.90 | -0.93 |
Net cash flow from financing activities | 1.71 | -0.34 | -6.14 |
Net increase in cash and cash equivalents | 0.11 | -0.33 | 1.13 |
Why should you invest in Veeda Clinical Research Limited IPO?
- One of India’s largest independent full-service CROs, with a recent expansion into regulated markets in the US and the EU.
- The Indian CRO market accounts for around 3% of the global market by value, estimated at USD 2 billion in 2021, and is expected to be the fastest expanding market, with a CAGR of approximately 12% from 2021 to 2026.
Know before investing
Strengths
- Veeda Clinical Research Limited is One of India’s largest independent full-service CROs.
- Extensive scientific expertise to serve a worldwide clientele while maintaining a high level of customer centricity and satisfaction.
- Continuous investments in technology-driven CRO solutions to improve operational efficiency and compliance management.
- With a successful track record of strong compliance culture and a consistent track record of solid financial performance.
Risks
- It failed to provide services in compliance with contractual obligations, regulatory regulations, and ethical concerns.
- Contract pricing pressures, whether as a result of increasing competition, change in demand for services, or other factors.
- Keeping up with the latest outsourcing trends in the pharmaceutical and biopharmaceutical industries has an impact on overall expenditure and R&D budgets.
- A number of risks may be linked with the purchase of Bioneeds, including risks from change of control terms in any of company’s contracts, legal issues & risks related with restructuring activities.
Veeda Clinical Research Limited Noteworthy Highlights:
- For Fiscal 2021, the company conducted research for 157 clients, including some of the world’s largest and fastest expanding pharmaceutical companies.
- They are one of the leaders in offering clinical research services to their global clients in 27 countries spanning Europe, Asia, and North America in an effective and safe manner by combining their past experience, knowledge of the global pharma sector, and strong scientific competence.
- To enable them provide excellent bioanalytical services, the organisation has established 45 Bioanalytical systems throughout the facilities, with a monthly processing capacity of 100,000 samples.
Veeda Clinical Research Limited IPO FAQs:
Q1. What is Veeda Clinical Research Limited IPO?
Ans. Veeda Clinical Research Limited IPO consists of The fresh issue will comprise of fresh equity shares worth up to Rs 331.60 crore and an offer for sale (OFS) of Rs 500 crore by the promoters and existing shareholders.
Q2. When will the Veeda Clinical Research Limited IPO allotment be available?
Ans. Details are not available.
Q3. What will be the Veeda Clinical Research Limited IPO lot size?
Ans. Details are not available.
Q4. When will Veeda Clinical Research Limited IPO open for subscription?
Ans. Details are not available.
Q5. What minimum lot size can retail investors subscribe to?
Ans. Retail investors can apply for a minimum of one lot.
Q6. When will Veeda Clinical Research Limited IPO list on exchanges?
Ans. Details are not available. Usually, it takes ten working days from the last day of subscription to finally list the IPOs on the stock exchanges.
Q7. What is the size of Veeda Clinical Research Limited IPO?
Ans. Details are not available.
Q8. How will I receive shares?
Ans. Your shares will get credited directly to your Demat account.
Q9. Is it necessary to approve a UPI mandate request immediately?
Ans. Approving the UPI payment is the final step of the IPO application. You will get T+1 days to approve the payment mandate in your UPI id.
Q10. What is the minimum order quantity for Veeda Clinical Research Limited IPO?
Ans. Details are not available.