INNOVA CAPTAB LIMITED

1281/1, Hilltop Industrial Estate, Near

EPIP, Phase-I, Jharmajri, Baddi, Dist.
Solan (H.P.)-173205 India.
Phone: +91-1795-650820

July 23, 2024

To, To,
BSE Limited National Stock Exchange of India Limited
Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor
Dalal Street, Mumbai – 400001 Plot No. C/1, “G” Block
BSE Symbol: INNOVACAP Bandra-Kurla Complex
BSE Scrip Code: 544067 Bandra (E), Mumbai – 400 051
NSE Symbol: INNOVACAP

Dear Sir/Madam,

Subject: Report of Monitoring Agency for the quarter ended June 30, 2024.

Pursuant to Regulation 32(6) of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 read with Regulation 41(4) of the Securities and
Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, please
find enclosed herewith Monitoring Agency Report issued in respect of the utilization of the
proceeds of the Initial Public Offer (“IPO”) of the Company for the quarter ended June 30, 2024,
by CRISIL Ratings Limited, the Monitoring Agency.

This report will also be hosted on the Company’s website viz. www.innovacaptab.com

We request you to take the above on record.

Thanking you,

Yours faithfully,
For Innova Captab Limited

NEEHARIK Digitally signed by

NEEHARIKA SHUKLA

A SHUKLA Date: 2024.07.23

18:02:18 +05'30'

Neeharika Shukla
Company Secretary & Compliance Officer
Membership No.: A42724

Encl: As above

Registered Office - 601, Proxima, Plot No 19, Sector 30 A Vashi, Navi Mumbai, Thane, Maharashtra, India,
400705 CIN - L24246MH2005PLC150371, email - [email protected]
Monitoring Agency Report for
Innova Captab Limited
for the quarter ended
June 30, 2024

1
CRL/MAR/INVCTL/2024-25/1125

July 23, 2024

To
Innova Captab Limited
601, Proxima, Plot No. 19, Sector
30 A, Vashi, Navi Mumbai,
Maharashtra 400705, India

Dear Sir,

Monitoring Agency Report for the quarter ended June 30, 2024 - in relation to the Initial Public Offer (“IPO”)
of Innova Captab Limited (“the Company”)

Pursuant to Regulation 41(2) of SEBI (lssue of Capital and Disclosure Requirements) Regulations, 2018 (“SEBI
ICDR Regulations”) and Monitoring Agency Agreement dated December 06, 2023, enclosed herewith the
Monitoring Agency Report, issued by CRISIL Ratings Limited, Monitoring Agency, as per Schedule XI of the SEBI
ICDR Regulations towards utilization of proceeds of IPO for the quarter ended June 30, 2024.

Request you to kindly take the same on records.

Thanking you,
For and on behalf of CRISIL Ratings Limited

Sushant Sarode
Director, Ratings (LCG)

2
 Report of the Monitoring Agency (MA)

Name of the issuer: Innova Captab Limited

For quarter ended: June 30, 2024

Name of the Monitoring Agency: CRISIL Ratings Limited

(a) Deviation from the objects: Not applicable

(b) Range of Deviation: Not applicable

Declaration:
We declare that this report provides an objective view of the utilization of the issue proceeds in relation to the objects of the
issue based on the information provided by the Issuer and information obtained from sources believed by it to be accurate and
reliable. The MA does not perform an audit and undertakes no independent verification of any information/ certifications/
statements it receives. This Report is not intended to create any legally binding obligations on the MA which accepts no
responsibility, whatsoever, for loss or damage from the use of the said information. The views and opinions expressed herein do
not constitute the opinion of MA to deal in any security of the Issuer in any manner whatsoever. Nothing mentioned in this
report is intended to or should be construed as creating a fiduciary relationship between the MA and any issuer or between the
agency and any user of this report. The MA and its affiliates also do not act as an expert as defined under Section 2(38) of the
Companies Act, 2013.

The MA or its affiliates may have credit rating or other commercial transactions with the entity to which the report pertains
and may receive separate compensation for its ratings and certain credit-related analyses. We confirm that we do not perceive
any conflict of interest in such relationship/interest while monitoring and reporting the utilization of the issue proceeds by the
issuer.

We have submitted the report herewith in line with the format prescribed by SEBI, capturing our comments, where applicable.
There are certain sections of the report under the title “Comments of the Board of Directors”, that shall be captured by the
Issuer’s Management / Audit Committee of the Board of Directors subsequent to the MA submitting their report to the issuer
and before dissemination of the report through stock exchanges. These sections have not been reviewed by the MA, and the MA
takes no responsibility for such comments of the issuer’s Management/Board.

Signature:
Name and designation of the Authorized Signatory: Sushant Sarode
Designation of Authorized person/Signing Authority: Director, Ratings (LCG)

3
1) Issuer Details:

Name of the issuer: Innova Captab Limited

Names of the promoter: a. Manoj Kumar Lohariwala

b. Vinay Kumar Lohariwala

Industry/sector to which it belongs: Pharmaceuticals

2) Issue Details

Issue Period: Thursday, December 21, 2023, to Tuesday, December 26, 2023

Type of issue (public/rights): Initial Public Offer (IPO)

Type of specified securities: Equity Shares

IPO Grading, if any: NA

Issue size: Rs 5,700.00 million

Issue size comprises of fresh issuance/gross proceeds of Rs
3,200.00 million (Net proceeds of Rs 2,931.09 million*) and an
offer for sale of Rs 2,500.00 million

*CRISIL Ratings shall be monitoring the net proceeds.

4
 3) Details of the arrangement made to ensure the monitoring of issue proceeds:

Source of information/
certifications Comments of Comments
considered by the of the
Particulars Reply
Monitoring Agency Monitoring Board of
for preparation of Agency Directors
report
Management
undertaking,
Whether all utilization is as per the disclosures Independent chartered No
Yes No Comments
in the Offer Document? accountant certificate^, Comments
Final Offer Document,
Bank Statements
Whether shareholder approval has been
obtained in case of material deviations from No
NA No Comments
expenditures disclosed in the Offer Comments
Document?
Whether the means of finance for the disclosed No
NA No Comments
objects of the issue has changed? Comments

Is there any major deviation observed over the No

NA No Comments
earlier monitoring agency reports? Comments
Management
Whether all Government/statutory approvals undertaking No
NA No Comments
related to the object(s) have been obtained? Comments

Whether all arrangements pertaining to

No
technical assistance/collaboration are in NA No Comments
Comments
operation?

Are there any favorable events improving the No

No No Comments
viability of these object(s)? Comments

Are there any unfavorable events affecting the No

No No Comments
viability of the object(s)? Comments

Is there any other relevant information that

No
may materially affect the decision making of No No Comments
Comments
the investors?

NA represents Not Applicable

^Certificate dated July 10, 2024, issued by M/s N B T & Co., Chartered Accountants (Firm Registration Number: 140489W), Peer-
reviewed Independent Chartered Accountant.

5
 4) Details of object(s) to be monitored:

i. Cost of the object(s):

Source of Original Comments of the Board of Directors

information/ cost
Revised Comment of Particulars
certification (as per the
Sr. Cost the Reason of Proposed of firm
Item considered by Offer
No. (Rs in Monitoring Cost financing arrange-
Head MA for Document)
million) Agency revision option ments
preparation of (Rs in
made
report million)

Repayment and /
or prepayment, in
part or in full, of No No No
1 1,444.00 NA No revision
certain outstanding Comments Comments Comments
loans of the
Company

Investment in the
Subsidiary, UML,
Management
for repayment and
undertaking, No No No
2 / or prepayment in 236.00 NA No revision
Independent Comments Comments Comments
part or full of
chartered
outstanding loans
accountant
availed by UML
certificate ^,
Final offer
document
Funding working
capital No No No
3 720.00 NA No revision
requirements of the Comments Comments Comments
Company

General Corporate No No No
4 531.09 NA No revision
Purposes# Comments Comments Comments

Total - 2,931.09 - - - - -

^ Certificate dated July 10, 2024, issued by M/s N B T & Co., Chartered Accountants (Firm Registration Number: 140489W), Peer-reviewed
Independent Chartered Accountant.

#The amount utilised for general corporate purposes does not exceed 25% of the Gross Proceeds (amounting to Rs 800.00 million) from the
Fresh Issue.

6
ii. Progress in the object(s):

Source of Amount utilized (Rs in Comments of the Board

information/ Amount million) of Directors
certifications as
considered by proposed Total Comments of
Monitoring in the As at At the unutilized the
Sr.
Item Head# Agency for Offer beginning During end amount Monitoring Proposed
No. Reasons for
preparation of Document of the the of the (Rs in Agency course of
report (Rs in idle funds
quarter quarter quarter million) action
million)

Repayment and / or Proceeds

prepayment, in part fully
No No
1 or in full, of certain 1,444.00 1,444.00 Nil 1,444.00 Nil utilized
Comments Comments
outstanding loans of towards the
the Company stated object

Investment in the
Subsidiary, UML, Management Proceeds
for repayment and / undertaking, fully
No No
2 or prepayment in Independent 236.00 236.00 Nil 236.00 Nil utilized
Comments Comments
part or full of chartered towards the
outstanding loans accountant stated object
availed by UML certificate ^,
Final Offer
Document, No
Funding working Bank utilization
No No
3 capital requirements Statements 720.00 100.00 Nil 100.00 620.00 during the
Comments Comments
of the Company reported
quarter

Proceeds
fully
General Corporate No No
4 531.09 531.09 Nil 531.09 Nil utilized
Purposes Comments Comments
towards the
stated object

Total 2,931.09 2,311.09 Nil 2,311.09 620.00 - - -

^Certificate dated July 10, 2024, issued by M/s N B T & Co., Chartered Accountants (Firm Registration Number: 140489W), Peer-
reviewed Independent Chartered Accountant.

7
 #Brief description of objects:

Object of the Issue Description of objects as per the offer document filed by the issuer
The Company has entered into various financing arrangements, including
Repayment and / or prepayment, in borrowings in the form of long-term loans, cash credit facilities and working capital
part or in full, of certain outstanding demand loans, among others. The Company proposes to utilize an aggregate
loans of the Company amount of ₹1,444.00 million from the Net Proceeds towards repayment and / or
prepayment, in part or in full, of certain outstanding loans of the Company.
UML availed (i) a loan of ₹300.00 million from HDFC Bank Limited, pursuant to
Investment in the Subsidiary, UML, the master facility agreement dated April 9, 2019, and (ii) a loan of ₹1,450 million
for repayment and / or prepayment from HDFC Bank Limited, pursuant to the facility agreement dated June 14, 2023
in part or full of outstanding loans (the “UML Loans”). The Company proposes to invest ₹236.00 million from the Net
availed by UML Proceeds in UML, and UML will utilise this amount to repay / prepay, in part or
full, the UML Loans.
The Company funds most of its working capital requirements in the ordinary
course of business from banks and internal accruals. As on October 31, 2023, the
Funding working capital
total outstanding borrowings in respect of their working capital facilities was
requirements of the Company
₹1,585.53 million, on a consolidated basis. The Company intends to utilise ₹720.00
million from the Net Proceeds to fund working capital requirements.

General corporate purposes may include, but are not restricted to,

(i) Funding growth opportunities, including strategic initiatives;

(ii) Meeting any expenses incurred in the ordinary course of business by
the Company, including salaries and wages, rent, administration
expenses, insurance related expenses, and the payment of taxes and
duties;
General Corporate Purposes (iii) Servicing of borrowings including payment of interest;
(iv) Brand building and other marketing expenses;
(v) Meeting of exigencies which the Company may face in the course of
any business; and
(vi) Any other purpose as permitted by applicable laws and as approved
by the Board or a duly appointed committee thereof, subject to
compliance with applicable law, including provisions of the
Companies Act

8
 iii. Deployment of unutilised proceeds^:

Amount Earnings as at Market value as

Type of instrument Return on
invested Maturity quarter ended at the end of
S. No. where amount is Investment
(in date June 30, 2024 quarter (in
invested (%)
million) (in million) million)
FD 003240300003360 –
1 Company’s Yes Bank 200.00 4-Jul-24 7.61 7.82% 207.61
Account
FD 003240600001292 –
2 Company’s Yes Bank 200.00 3-Aug-24 7.67 7.82% 207.67
Account
FD 003240600001302 –
3 Company’s Yes Bank 220.00 3-Sep-24 8.44 7.82% 228.44
Account
Total 620.00 - 23.72 - 643.72

^On the basis of management undertaking and certificate dated July 10, 2024, issued by M/s N B T & Co., Chartered
Accountants (Firm Registration Number: 140489W), Peer-reviewed Independent Chartered Accountant.

Note:
An amount of Rs. 0.14 million was transferred to the Company's Monitoring Account maintained with HDFC Bank from
Company’s public issue account on December 29th, 2023. This amount is part of the IPO issue expenses and shall be utilized
towards the same.

iv. Delay in implementation of the object(s)^:

Comments of the Board of

Completion Date
Directors
Delay
Object(s) As per the Offer (no. of days/ Proposed
Document Actual months) Reason of delay course of
action
Not applicable

^On the basis of management undertaking

5) Details of utilization of proceeds stated as General Corporate Purpose amount in the offer document:

Not applicable on the basis of management undertaking

9
Disclaimers:

a) This Report is prepared by CRISIL Ratings Limited (hereinafter referred to as "Monitoring Agency” / “MA" /
“CRL”). The MA has taken utmost care to ensure accuracy and objectivity while developing this Report based on the
information provided by the Issuer and information obtained from sources believed by it to be accurate and reliable.
The views and opinions expressed herein do not constitute the opinion of MA to deal in any security of the Issuer in
any manner whatsoever.
b) This Report has to be seen in its entirety; the selective review of portions of the Report may lead to inaccurate
assessments. For the purpose of this Report, MA has relied upon the information provided by the management
/officials/ consultants of the Issuer and third-party sources like statutory auditors (or from peer reviewed CA firms)
appointed by the Issuer believed by it to be accurate and reliable.
c) Nothing contained in this Report is capable or intended to create any legally binding obligations on the MA which
accepts no responsibility, whatsoever, for loss or damage from the use of the said information. The MA is also not
responsible for any errors in transmission and specifically states that it, or its directors, employees do not have any
financial liabilities whatsoever to the users of this Report.
d) The MA and its affiliates do not act as a fiduciary. The MA and its affiliates also do not act as an expert to the extent
defined under Section 2(38) of the Companies Act, 2013. While the MA has obtained information from sources it
believes to be reliable, it does not perform an audit and undertakes no independent verification of any information/
certifications/ statements it receives from auditors (or from peer reviewed CA firms), lawyers, chartered engineers or
other experts, and relies on in its reports.
e) The MA or its affiliates may have other commercial transactions with the entity to which the report pertains. As an
example, the MA may rate the issuer or any debt instruments / facilities issued or proposed to be issued by the issuer
that is subject matter of this report. The MA may receive separate compensation for its ratings and certain credit-
related analyses, normally from issuers or underwriters of the instruments, facilities, securities or from obligors.
f) The MA report is intended for the jurisdiction of India only. This report does not constitute an offer of services.
Without limiting the generality of the foregoing, nothing in the report is to be construed as CRL providing or
intending to provide any services in jurisdictions outside India, where it does not have the necessary licenses and/or
registration to carry out its business activities referred to above.
g) Access or use of this report does not create a client relationship between CRL and the user.
h) CRL is not aware that any user intends to rely on the report or of the manner in which a user intends to use the report.
In preparing this report, MA has not taken into consideration the objectives or particular needs of any particular user.
i) It is made abundantly clear that the report is not intended to and does not constitute an investment advice. The report
is not an offer to sell or an offer to purchase or subscribe for any investment in any securities, instruments, facilities
or solicitation of any kind to enter into any deal or transaction with the entity to which the report pertains. The report
should not be a basis for any investment decision within the meaning of any law or regulation (including the laws
and regulations applicable in the US).
j) The report comprises professional opinion of CRL as of the date they are expressed, based on the information received
from the issuer and other sources considered reliable by CRL. Any opinions expressed here are in good faith, are subject
to change without notice, and are only current as of the stated date of their issue. The report does not constitute
statements of fact or recommendations to purchase, hold or sell any securities/instruments or to make any investment
decisions.
k) Neither CRL nor its affiliates, third-party providers, as well as their directors, officers, shareholders, employees or
agents guarantee the accuracy, completeness or adequacy of the report, and shall not have any liability for any errors,
omissions or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the
report. CRL and each aforesaid party disclaims any and all express or implied warranties, including but not limited
to any warranties of merchantability, suitability or fitness for a particular purpose or use or use. In no event shall
CRL or any aforesaid party be liable to any user for any direct, indirect, incidental, exemplary, compensatory,
punitive, special or consequential damages, costs, expenses, legal fees or losses (including, without limitation, lost

10
 income or lost profits and opportunity costs) in connection with any use of any part of the report even if advised of
the possibility of such damages.
l) CRL has established policies and procedures to maintain the confidentiality of certain non-public information received
in connection with the preparation of this report. CRL has in place a code of conduct and policies for managing conflict
of interest.
m) Unless required under any applicable law, this report should not be reproduced or redistributed to any other person
or in any form without prior written consent from CRL.
n) By accepting a copy of this Report, the recipient accepts the terms of this Disclaimer, which forms an integral part of
this Report.

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