Veeda Clinical Research Ltd IPO

About Veeda Clinical Research Ltd IPO

A 100% book-built offer, the IPO of Veeda Clinical Research Ltd comprises a fresh issue of equity shares of face value of ₹2 each aggregating up to ₹185 crore. The IPO also has an offer for sale of up to 13,008,128 equity shares.

Objectives of Veeda Clinical Research Ltd IPO

• Capital expenditure towards procurement of equipment and machinery for the company
  
• Investment in its material subsidiary Bioneeds India Private Limited for capital expenditure towards procurement of equipment and machinery
  
• Investment in its material subsidiary Bioneeds India Private Limited for repayment/prepayment, in part or full of certain borrowings of its subsidiary
  
• Funding organic growth of the company, its material subsidiary, Bioneeds India Private Limited and Health Data Specialists (Holdings) Limited through marketing and promotional activities, updation of technology and adoption of modern digital solutions in its workflows to enhance the efficiency and quality assurance of its operating processes and data management
  
• General corporate purposes
  

Industry Outlook

The global contract research organisation (CRO) market is forecasted to grow rapidly at a 10.6% CAGR from 2023 to 2028. The CRO market was valued at USD 78.6 billion in 2023 and is expected to reach USD 130.3 billion in 2028. The CRO market will be driven by several factors leading to market growth and increased outsourcing penetration. Massive revenue erosion by pharma giants due to high patent cliffs, giving rise to the biosimilars and generics industry, will aid the growth of the CRO market.

Furthermore, increased R&D expenditure, increased complexity of drug development due to increased biopharma modalities, and increased biotech funding giving rise to virtual biopharmaceutical companies are some of the factors that will foster growth in the global CRO market.

Company Information

Veeda Clinical Research Ltd is an independent, global full-service CRO offering a comprehensive portfolio of services across various stages of the drug development value chain ranging from non-clinical and preclinical development and testing to early phase clinical pharmacology, bioavailability and bioequivalence studies and early to late phase clinical trials for different modalities of drugs including novel chemical entities, novel biological entities, generics and biosimilars besides medical devices.

Incorporated in 2004, the company commenced its operations with its first facility in Ahmedabad, Gujarat with HVS capabilities, which was set up in 2005. It has since expanded its capacities and capabilities steadily through organic and inorganic growth initiatives, to increasingly address a wider range of research and development service requirements of small, mid-size and global pharmaceutical companies worldwide.

Risks of Veeda Clinical Research Ltd

• Client concentration risk

Veeda derives a significant portion of its revenue from contracts with its top clients. Its top five clients contributed more than 41.16% of its revenue from contracts with customers in the six months period ended September 30, 2024. Its top client contributed approximately 28.37% of its revenue from contracts with customers in the six months period ended September 30, 2024. Loss of any of these clients could adversely affect its business, results of operations, cash flows and financial condition.

• Regulatory compliance risk

The company is required to perform its services in accordance with contractual requirements, regulatory standards in applicable jurisdictions and ethical considerations. Any adverse action by any authority, including the Food and Drug Administration or the European Medicines Agency against it would negatively impact its ability to offer its services to its clients and adversely impact its business and prospects.

• Reliance on industry-specific clients

The company’s financial performance is dependent on its ability to secure business from clients in the pharmaceutical and biopharmaceutical industry. Consequently, any adverse changes in outsourcing trends in the pharmaceutical and biopharmaceutical industry and changes in aggregate spending and research and development budgets could adversely affect its operating results and growth rate.

Anchor Investor Bidding Date TBA

IPO Registrar and Book Running Lead Managers

• Registrar: MUFG Intime India Pvt Ltd, formerly known as Link Intime India Pvt Ltd
• Book Running Lead Managers: Axis Capital Ltd, CLSA India Pvt Ltd, IIFL Capital Services Ltd and SBI Capital Markets Ltd

Business Model

Veeda’s services include:

• Early phase and late phase clinical trials
  
• Healthy volunteer studies which includes bioavailability studies and bioequivalence studies
  
• Pre-clinical trials and non-clinical testing
  
• Biopharma services which includes non-clinical analysis and clinical bioanalysis of large molecules
  

The company has seven facilities in India as on the date of its draft red herring prospectus and access to over 280 clinical sites in India as of September 30, 2024.

Company Growth Trajectory

Veeda’s revenue from operations grew from ₹288.026 crores in FY 22 to ₹388.777 crores in FY 24. The company expects its total addressable market (TAM) to grow from USD 65.4 billion in 2023 to USD 110.7 billion in 2028 growing at a CAGR of 11.1%.

How to Check Allotment Status of Veeda Clinical Research Ltd?

Visit the Registrar’s Website

Visit the official website of MUFG Intime India Private Ltd and choose ‘Public Issues’ from ‘Investor Services’ dropdown. Choose the company name from the ‘Select Company’ dropdown. Enter either your PAN, application number, DP client ID, etc and click on ‘Submit’ to check status.

Check on Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Select 'Equity' from the dropdown menu
• Choose 'Veeda Clinical Research Ltd' in the next dropdown
• Enter your application number
• Enter your PAN
• Click 'Search’ to know allotment status of Veeda Clinical Research Ltd IPO

Verify on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Veeda Clinical Research Ltd IPO. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:

• Application number
• PAN

Then click 'Submit' to know the allotment status.

How to Apply for Veeda Clinical Research Ltd IPO?

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.