Infinion Biopharma Ltd IPO - 7 things to know

Infinion Biopharma Ltd, a life sciences company, had filed its draft red herring prospectus (DRHP) in late August 2021. As of date, the SEBI approval, which comes in the form of observations, is yet to come in.

The company can decide on the timing and game plan for the IPO only after the actual approval from SEBI comes in. Normally, in case SEBI does not have any queries or does not seek any specific clarifications, then the approval is given between 2 months and 3 months from the date of the filing of the DRHP.
 

7 important things to know about the Infinion Biopharma Ltd IPO

1) Infinion Biopharma Ltd has filed for an IPO with SEBI which comprises entirely of a fresh issue of 45 lakh shares. There is no offer for sale or OFS of shares in this IPO.

However, since the price band for the stock has not been fixed, the size of the IPO and the value of the fresh issue component is not known as of now.

Infinion Biopharma Ltd is into the area of life sciences products and solutions and has been experimenting with a unique and different approach to the business..

2) As stated earlier, there is no OFS portion in the Infinion Biopharma Ltd IPO. The entire issue will be by way of a fresh issue only. The value of the fresh issue component will depend on the eventual pricing that the company arrives at for the price band.

However, the company has disclosed that the company intends to use the fresh funds so raised towards investment in Mobius Biomedical Inc.

In addition, the company will also use the funds to acquire licenses for product development of skin care and women’s health products. Part of the funds will also be used for working capital funding.

3) Out of the IPO size of around 45 lakh shares, the company is exploring the option of doing a pre-IPO placement of around 7 lakh shares.

The pre-IPO placement is normally done well before the IPO and can be done at a price that is at divergence with the actual IPO price. Unlike the anchor placement, there is no compulsion on pricing. However, the lock-in period entailed in a pre-IPO placement is higher than the anchor.

Normally, the pre-IPO placement is done with HNIs, family offices and with qualified institutional buyers or QIBs. If the pre-IPO placement is successful, then Infinion Biopharma will reduce the size of the IPO by an equivalent amount.
 

4) Infinion Biopharma is essentially an innovation-driven life sciences company. However, what the company is experimenting with is quite unique. Infinion is looking to combine biophysics and engineering with traditional pharmacology and biochemistry.

This is one of the emerging thinking in this field and is being used abroad to produce high-value, innovative products across a range of therapeutic areas. The business model can be value accretive over the long run.

5) While part of the funds raised will be used for core expansion purposes, this also continues to be an extremely marketing intensive business. Hence part of the funds will also be used for sales, marketing and distribution.

The outlay will also be towards setting up the company's geographical reach, enhancing geographical reach and deepening existing geographical penetration for better ROI. 

6) Infinion Biopharma bring some key strengths to the table like a strong track record of performance and delivery, investments in R&D etc.

Infinion can also boast of strong relationships with technology partners and access to proprietary distribution network. In a way, the unique technology also gives the company a solid first mover advantage. Its technology is patented and licensed and can contribute to strong IP in the future. 

7) The IPO of Infinion Biopharma Ltd will be lead managed by Aryaman Financial Services. They will act as the sole book running lead managers or BRLMs to the issue.

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